66
Vanguard NewYork Municipal Money Market Fund Supplement Dated December 4, 2020, to the Prospectus Dated March 27, 2020 Prospectus Text Changes The following is added under the heading “The Funds andVanguard” in the More on the Funds section: Vanguard and the Fund’s Board have voluntarily agreed to temporarily limit certain net operating expenses in excess of the Fund’s daily yield so as to maintain a zero or positive yield for the Fund.Vanguard and the Fund’s Board may terminate the temporary expense limitation at any time. © 2020 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor. PS 076B 122020

Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

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Page 1: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Vanguard New York Municipal Money Market Fund

Supplement Dated December 4, 2020, to theProspectus Dated March 27, 2020

Prospectus Text ChangesThe following is added under the heading “The Funds and Vanguard” in theMore on the Funds section:

Vanguard and the Fund’s Board have voluntarily agreed to temporarily limitcertain net operating expenses in excess of the Fund’s daily yield so as tomaintain a zero or positive yield for the Fund. Vanguard and the Fund’s Boardmay terminate the temporary expense limitation at any time.

© 2020 The Vanguard Group, Inc. All rights reserved.Vanguard Marketing Corporation, Distributor. PS 076B 122020

Page 2: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Vanguard New York Long-Term Tax-Exempt Fund

Supplement Dated November 19, 2020, to theProspectus and Summary Prospectus for InvestorShares & Admiral™ Shares Dated March 27, 2020

Important Changes to Vanguard New York Long-Term Tax-Exempt Fund(the “Fund”)Effective immediately, Stephen M. McFee has been named as a co-portfoliomanager of the Fund. He joins Adam M. Ferguson, who will continue to managethe Fund.

Prospectus and Summary Prospectus Text ChangesThe following is added under the heading “Investment Advisor” in the FundSummary section:

Stephen M. McFee, CFA, Portfolio Manager at Vanguard. He has co-managed theFund since November 2020.

Prospectus Text ChangesThe following is added under the heading “Investment Advisor” in the More onthe Funds section:

Stephen M. McFee, CFA, Portfolio Manager and co-lead of the municipalrevenue team in Vanguard’s Fixed Income Group. He has been with Vanguardsince 2005, has worked in investment management since 2007, and hasco-managed the New York Long-Term Tax-Exempt Fund since November 2020.Education: B.A./B.S., East Stroudsburg University; M.S., St. Joseph’s University.

© 2020 The Vanguard Group, Inc. All rights reserved.Vanguard Marketing Corporation, Distributor. PS 076A 112020

Page 3: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Vanguard New York Tax-Exempt FundsProspectus

March 27, 2020

Investor Shares & Admiral™ Shares

Vanguard New York Municipal Money Market Fund Investor Shares (VYFXX)

Vanguard New York Long-Term Tax-Exempt Fund Investor Shares (VNYTX)

Vanguard New York Long-Term Tax-Exempt Fund Admiral Shares (VNYUX)

See the inside front cover for important information about access to yourfund’s annual and semiannual shareholder reports.

This prospectus contains financial data for the Funds through the fiscal year ended November 30, 2019.

The Securities and Exchange Commission (SEC) has not approved or disapproved thesesecurities or passed upon the adequacy of this prospectus. Any representation to the contrary isa criminal offense.

Page 4: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Important information about access to shareholder reports

Beginning on January 1, 2021, as permitted by regulations adopted by theSEC, paper copies of your fund’s annual and semiannual shareholder reportswill no longer be sent to you by mail, unless you specifically request them.Instead, you will be notified by mail each time a report is posted on thewebsite and will be provided with a link to access the report.

If you have already elected to receive shareholder reports electronically, youwill not be affected by this change and do not need to take any action. You mayelect to receive shareholder reports and other communications from the fundelectronically by contacting your financial intermediary (such as a broker-dealeror bank) or, if you invest directly with the fund, by calling Vanguard at one ofthe phone numbers on the back cover of this prospectus or by logging on tovanguard.com.

You may elect to receive paper copies of all future shareholder reports free ofcharge. If you invest through a financial intermediary, you can contact theintermediary to request that you continue to receive paper copies. If you investdirectly with the fund, you can call Vanguard at one of the phone numbers onthe back cover of this prospectus or log on to vanguard.com. Your election toreceive paper copies will apply to all the funds you hold through anintermediary or directly with Vanguard.

Contents

Vanguard Fund Summaries

New York Municipal Money Market Fund 1

New York Long-Term Tax-Exempt Fund 6

Investing in Tax-Exempt Funds 12

Investing in Money Market Funds 14

More on the Funds 16

The Funds and Vanguard 27

Investment Advisor 28

Dividends, Capital Gains, and Taxes 29

Share Price 32

Financial Highlights 34

Investing With Vanguard 37

Purchasing Shares 37

Converting Shares 40

Redeeming Shares 42

Exchanging Shares 46

Frequent-Trading Limitations 47

Other Rules You Should Know 49

Fund and Account Updates 53

Contacting Vanguard 55

Additional Information 55

Glossary of Investment Terms 57

Page 5: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Vanguard New York Municipal Money Market Fund

Investment ObjectiveThe Fund seeks to provide current income that is exempt from both federal andNew York personal income taxes while maintaining a stable net asset value of $1per share. The Fund is intended for New York residents only.

Fees and ExpensesThe following table describes the fees and expenses you may pay if you buy andhold shares of the Fund.

Shareholder Fees(Fees paid directly from your investment)

Sales Charge (Load) Imposed on Purchases NonePurchase Fee NoneSales Charge (Load) Imposed on Reinvested Dividends NoneRedemption Fee NoneAccount Service Fee Per Year(for certain fund account balances below $10,000) $20

Annual Fund Operating Expenses(Expenses that you pay each year as a percentage of the value of your investment)

Management Fees 0.14%12b-1 Distribution Fee NoneOther Expenses 0.02%Total Annual Fund Operating Expenses 0.16%

1

Page 6: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Example

The following example is intended to help you compare the cost of investing inthe Fund with the cost of investing in other mutual funds. It illustrates thehypothetical expenses that you would incur over various periods if you were toinvest $10,000 in the Fund’s shares. This example assumes that the Fundprovides a return of 5% each year and that total annual fund operating expensesremain as stated in the preceding table. You would incur these hypotheticalexpenses whether or not you were to redeem your investment at the end of thegiven period. Although your actual costs may be higher or lower, based on theseassumptions your costs would be:

1 Year 3 Years 5 Years 10 Years$16 $52 $90 $205

Principal Investment StrategiesUnder normal circumstances, the Fund invests at least 80% of its assets in avariety of high-quality, short-term New York municipal securities whose income isexempt from federal and New York state taxes. To be considered high quality, asecurity must be determined by Vanguard to present minimal credit risk based inpart on a consideration of maturity, portfolio diversification, portfolio liquidity, andcredit quality. The Fund invests in securities with effective maturities of 397 daysor less, maintains a dollar-weighted average maturity of 60 days or less, andmaintains a dollar-weighted average life of 120 days or less.

Principal RisksThe Fund is designed for investors with a low tolerance for risk; however, theFund is subject to the following risks, which could affect theFund’s performance:

• State-specific risk, which is the chance that developments in New York, suchas tax, legislative, or political changes, will adversely affect the securities held bythe Fund or that are available for investment by the Fund. Because the Fundinvests primarily in securities issued by New York and its municipalities, it ismore vulnerable to the credit risk and unfavorable developments in New Yorkthan are funds that invest in municipal securities of many states. Unfavorabledevelopments in any economic sector may have far-reaching ramifications on theoverall New York municipal market.

• Credit risk, which is the chance that the issuer of a security will fail to payinterest or principal in a timely manner or that negative perceptions of theissuer’s ability to make such payments will cause the price of that security todecline. Credit risk should be very low for the Fund because it invests primarily insecurities that are considered to be of high quality.

2

Page 7: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

• Income risk, which is the chance that the Fund’s income will decline becauseof falling interest rates. Because the Fund’s income is based on short-terminterest rates—which can fluctuate significantly over short periods—income riskis expected to be high.

• Manager risk, which is the chance that poor security selection will cause theFund to underperform relevant benchmarks or other funds with a similarinvestment objective.

• Nondiversification risk, which is the chance that the Fund’s performance maybe hurt disproportionately by the poor performance of relatively few securities.The Fund is considered nondiversified, which means that it may invest a greaterpercentage of its assets in the securities of particular issuers as compared withdiversified mutual funds.

• Tax risk, which is the chance that all or a portion of the tax-exempt incomefrom municipal bonds held by the Fund will be declared taxable, possibly withretroactive effect, because of unfavorable changes in tax laws, adverseinterpretations by the Internal Revenue Service or state or local tax authorities,or noncompliant conduct of a bond issuer.

• Derivatives risk. The Fund may invest in structured products such as tenderoption bonds and long-term municipal securities combined with a demandfeature (e.g., variable rate demand notes or VRDNs), which may involve risksdifferent from, and possibly greater than, those of investments directly in theunderlying securities or assets.

You could lose money by investing in the Fund. Although the Fund seeks topreserve the value of your investment at $1.00 per share, it cannotguarantee it will do so. The Fund may impose a fee upon sale of yourshares or may temporarily suspend your ability to sell shares if the Fund’sliquidity falls below required minimums because of market conditions orother factors. An investment in the Fund is not insured or guaranteed by theFederal Deposit Insurance Corporation or any other government agency.The Fund’s sponsor has no legal obligation to provide financial support tothe Fund, and you should not expect that the sponsor will provide financialsupport to the Fund at any time.

3

Page 8: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Annual Total ReturnsThe following bar chart and table are intended to help you understand the risksof investing in the Fund. The bar chart shows how the performance of the Fundhas varied from one calendar year to another over the periods shown. The tableshows how the average annual total returns of the Fund compare with those of acomparative benchmark, which has investment characteristics similar to those ofthe Fund. Returns for the New York Tax-Exempt Money Market Funds Averageare derived from data provided by Lipper, a Thomson Reuters Company. Keep inmind that the Fund’s past performance does not indicate how the Fund willperform in the future. Updated performance information is available on ourwebsite at vanguard.com/performance or by calling Vanguard toll-free at800-662-7447.

Annual Total Returns — Vanguard New York Municipal Money Market FundInvestor Shares

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

0%

1%

2%

3%

0.10 0.05 0.03 0.01 0.01 0.010.30

0.71

1.29 1.35

During the periods shown in the bar chart, the highest and lowest returns for acalendar quarter were:

Total Return Quarter/YearHighest 0.39% June 30, 2019Lowest 0.00 March 31, 2013

Average Annual Total Returns for Periods Ended December 31, 2019

1 Year 5 Years 10 YearsVanguard New York Municipal Money Market FundInvestor Shares 1.35% 0.73% 0.39%New York Tax-Exempt Money Market Funds Average 1.01% 0.45% 0.23%

Investment AdvisorThe Vanguard Group, Inc. (Vanguard)

4

Page 9: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Portfolio Manager

John Grimes, CFA, Portfolio Manager at Vanguard. He has managed the Fundsince 2017.

Purchase and Sale of Fund SharesYou may purchase or redeem shares online through our website (vanguard.com),by mail (The Vanguard Group, P.O. Box 1110, Valley Forge, PA 19482-1110), or bytelephone (800-662-2739). When your trade is processed depends on the dayand time Vanguard receives your request in good order and the manner in whichit is submitted. Generally, trades placed after the close of business areprocessed during the next business day. The minimum investment amountrequired to open and maintain a Fund account for Investor Shares is $3,000. Theminimum investment amount required to add to an existing Fund account isgenerally $1. Financial intermediaries and Vanguard-advised clients shouldcontact Vanguard for information on special eligibility rules that may apply tothem regarding Investor Shares. If you are investing through an intermediary,please contact that firm directly for more information regarding your eligibility.The Fund is only available for purchase within accounts beneficially owned bynatural persons.

Tax InformationThe Fund’s distributions may be taxable as ordinary income or capital gain. Amajority of the income dividends that you receive from the Fund are expected tobe exempt from federal and state income taxes. However, a portion of theFund’s distributions may be subject to federal, state, or local income taxes or thefederal alternative minimum tax.

Payments to Financial IntermediariesThe Fund and its investment advisor do not pay financial intermediaries for salesof Fund shares.

5

Page 10: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Vanguard New York Long-Term Tax-Exempt Fund

Investment ObjectiveThe Fund seeks to provide current income that is exempt from both federal andNew York personal income taxes. The Fund is intended for New Yorkresidents only.

Fees and ExpensesThe following table describes the fees and expenses you may pay if you buy andhold Investor Shares or Admiral Shares of the Fund.

Shareholder Fees(Fees paid directly from your investment)

Investor Shares Admiral SharesSales Charge (Load) Imposed on Purchases None NonePurchase Fee None NoneSales Charge (Load) Imposed on Reinvested Dividends None NoneRedemption Fee None NoneAccount Service Fee Per Year(for certain fund account balances below $10,000) $20 $20

Annual Fund Operating Expenses(Expenses that you pay each year as a percentage of the value of your investment)

Investor Shares Admiral SharesManagement Fees 0.15% 0.08%12b-1 Distribution Fee None NoneOther Expenses 0.02% 0.01%Total Annual Fund Operating Expenses 0.17% 0.09%

6

Page 11: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Examples

The following examples are intended to help you compare the cost of investingin the Fund’s Investor Shares or Admiral Shares with the cost of investing inother mutual funds. They illustrate the hypothetical expenses that you wouldincur over various periods if you were to invest $10,000 in the Fund’s shares.These examples assume that the shares provide a return of 5% each year andthat total annual fund operating expenses remain as stated in the precedingtable. You would incur these hypothetical expenses whether or not you were toredeem your investment at the end of the given period. Although your actualcosts may be higher or lower, based on these assumptions your costs would be:

1 Year 3 Years 5 Years 10 YearsInvestor Shares $17 $55 $96 $217Admiral Shares $9 $29 $51 $115

Portfolio Turnover

The Fund pays transaction costs, such as commissions, when it buys and sellssecurities (or “turns over” its portfolio). A higher portfolio turnover rate mayindicate higher transaction costs and may result in more taxes when Fundshares are held in a taxable account. These costs, which are not reflected inannual fund operating expenses or in the previous expense examples, reducethe Fund’s performance. During the most recent fiscal year, the Fund’s portfolioturnover rate was 15% of the average value of its portfolio.

Principal Investment StrategiesThe Fund invests primarily in high-quality municipal bonds issued by New Yorkstate and local governments, as well as by regional governmental and publicfinancing authorities. Under normal circumstances, at least 80% of the Fund’sassets will be invested in securities whose income is exempt from federal andNew York state taxes. Although the Fund has no limitations on the maturities ofindividual securities, its dollar-weighted average maturity is expected to bebetween 10 and 25 years.

Principal RisksAn investment in the Fund could lose money over short or long periods of time.You should expect the Fund’s share price and total return to fluctuate within awide range. The Fund is subject to the following risks, which could affect theFund’s performance:

• State-specific risk, which is the chance that developments in New York, suchas tax, legislative, or political changes, will adversely affect the securities held bythe Fund or that are available for investment by the Fund. Because the Fund

7

Page 12: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

invests primarily in securities issued by New York and its municipalities, it ismore vulnerable to the credit risk and unfavorable developments in New Yorkthan are funds that invest in municipal securities of many states. Unfavorabledevelopments in any economic sector may have far-reaching ramifications on theoverall New York municipal market.

• Credit risk, which is the chance that a bond issuer will fail to pay interest orprincipal in a timely manner or that negative perceptions of the issuer’s ability tomake such payments will cause the price of that bond to decline.

• Interest rate risk, which is the chance that bond prices will decline because ofrising interest rates. Interest rate risk should be high for the Fund because itinvests primarily in long-term bonds, whose prices are more sensitive to interestrate changes than are the prices of shorter-term bonds.

• Call risk, which is the chance that during periods of falling interest rates,issuers of callable bonds may call (redeem) securities with higher coupon ratesor interest rates before their maturity dates. The Fund would then lose any priceappreciation above the bond’s call price and would be forced to reinvest theunanticipated proceeds at lower interest rates, resulting in a decline in theFund’s income. Such redemptions and subsequent reinvestments would alsoincrease the Fund’s portfolio turnover rate. Call risk is generally high forlong-term bond funds.

• Extension risk, which is the chance that during periods of rising interest rates,certain debt securities will be paid off substantially more slowly than originallyanticipated, and the value of those securities may fall. Extension risk is generallyhigh for long-term bond funds.

• Income risk, which is the chance that the Fund’s income will decline becauseof falling interest rates. Income risk should be low for the Fund because itinvests primarily in long-term bonds.

• Liquidity risk, which is the chance that the Fund may not be able to sell asecurity in a timely manner at a desired price.

• Manager risk, which is the chance that poor security selection will cause theFund to underperform relevant benchmarks or other funds with a similarinvestment objective.

• Nondiversification risk, which is the chance that the Fund’s performance maybe hurt disproportionately by the poor performance of relatively few securities.The Fund is considered nondiversified, which means that it may invest a greaterpercentage of its assets in the securities of particular issuers as compared withdiversified mutual funds.

• Tax risk, which is the chance that all or a portion of the tax-exempt incomefrom municipal bonds held by the Fund will be declared taxable, possibly with

8

Page 13: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

retroactive effect, because of unfavorable changes in tax laws, adverseinterpretations by the Internal Revenue Service or state or local tax authorities,or noncompliant conduct of a bond issuer.

An investment in the Fund is not a deposit of a bank and is not insured orguaranteed by the Federal Deposit Insurance Corporation or any othergovernment agency.

Annual Total ReturnsThe following bar chart and table are intended to help you understand the risksof investing in the Fund. The bar chart shows how the performance of the Fund‘sInvestor Shares has varied from one calendar year to another over the periodsshown. The table shows how the average annual total returns of the shareclasses presented compare with those of a relevant market index, which hasinvestment characteristics similar to those of the Fund. Keep in mind that theFund’s past performance (before and after taxes) does not indicate how the Fundwill perform in the future. Updated performance information is available on ourwebsite at vanguard.com/performance or by calling Vanguard toll-free at800-662-7447.

Annual Total Returns — Vanguard New York Long-Term Tax-Exempt Fund Investor Shares

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

0%

5%

10%

15%

-5%

-10%

1.83

9.626.94

–2.93

10.83

4.140.53

5.77

0.51

8.34

During the periods shown in the bar chart, the highest and lowest returns for acalendar quarter were:

Total Return Quarter/YearHighest 3.83% March 31, 2014Lowest -4.02% December 31, 2010

9

Page 14: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Average Annual Total Returns for Periods Ended December 31, 2019

1 Year 5 Years 10 YearsVanguard New York Long-Term Tax-Exempt FundInvestor Shares

Return Before Taxes 8.34% 3.82% 4.47%Return After Taxes on Distributions 8.23 3.73 4.43Return After Taxes on Distributions and Sale of Fund Shares 6.26 3.66 4.26Vanguard New York Long-Term Tax-Exempt Fund AdmiralShares

Return Before Taxes 8.43% 3.91% 4.56%Bloomberg Barclays NY Municipal Bond Index(reflects no deduction for fees, expenses, or taxes) 7.12% 3.38% 4.13%

Actual after-tax returns depend on your tax situation and may differ from thoseshown in the preceding table. When after-tax returns are calculated, it isassumed that the shareholder was in the highest individual federal marginalincome tax bracket at the time of each distribution of income or capital gains orupon redemption. State and local income taxes are not reflected in thecalculations. Please note that after-tax returns are shown only for the InvestorShares and may differ for each share class. After-tax returns are not relevant for ashareholder who holds fund shares in a tax-deferred account, such as anindividual retirement account or a 401(k) plan. Also, figures captioned ReturnAfter Taxes on Distributions and Sale of Fund Shares may be higher than otherfigures for the same period if a capital loss occurs upon redemption and resultsin an assumed tax deduction for the shareholder.

Investment AdvisorThe Vanguard Group, Inc. (Vanguard)

Portfolio Manager

Adam M. Ferguson, CFA, Portfolio Manager at Vanguard. He has managed theFund since 2013.

Purchase and Sale of Fund SharesYou may purchase or redeem shares online through our website (vanguard.com),by mail (The Vanguard Group, P.O. Box 1110, Valley Forge, PA 19482-1110), or bytelephone (800-662-2739). The minimum investment amount required to openand maintain a Fund account for Investor Shares or Admiral Shares is $3,000 or$50,000, respectively. The minimum investment amount required to add to anexisting Fund account is generally $1. Financial intermediaries, institutionalclients, and Vanguard-advised clients should contact Vanguard for information on

10

Page 15: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

special eligibility rules that may apply to them regarding Admiral Shares. If youare investing through an intermediary, please contact that firm directly for moreinformation regarding your eligibility.

Tax InformationThe Fund’s distributions may be taxable as ordinary income or capital gain. Amajority of the income dividends that you receive from the Fund are expected tobe exempt from federal and state income taxes. However, a portion of theFund’s distributions may be subject to federal, state, or local income taxes or thefederal alternative minimum tax.

Payments to Financial IntermediariesThe Fund and its investment advisor do not pay financial intermediaries for salesof Fund shares.

11

Page 16: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Investing in Tax-Exempt Funds

What Are Municipal Bond Funds?Municipal bond funds invest primarily in interest-bearing securities issued bystate and local governments and by other governmental authorities to supporttheir needs or to finance public projects. A municipal bond—like a bond issuedby a corporation or the U.S. government—obligates the issuer to pay thebondholder a fixed or variable amount of interest periodically and to repay theprincipal value of the bond on a specific maturity date. Unlike most other bonds,however, municipal bonds generally pay interest that is exempt from federalincome taxes and, in some cases, from state and local taxes. For certainshareholders, the interest may be subject to the alternative minimum tax.

Taxable Versus Tax-Exempt FundsTax-exempt funds provide income that is exempt from federal taxes and, in thecase of state tax-exempt funds, from state taxes as well. The Funds described inthis prospectus are not for everyone; they are intended only for residents of theState of New York and are best suited for income-oriented investors in a high taxbracket. Yields on tax-exempt bonds are typically lower than those on taxablebonds, so investing in a tax-exempt fund makes sense only if you stand to savemore in taxes than you would earn as additional income while invested in ataxable fund.

To determine whether a state tax-exempt fund—such as one of the VanguardNew York Tax-Exempt Funds—makes sense for you, compute the tax-exemptfund’s taxable-equivalent yield. This figure enables you to take taxes into accountwhen comparing your potential return on a tax-exempt fund with the potentialreturn on a taxable fund.

To compute the taxable-equivalent yield:

• Figure out your combined tax bracket by adding up your state and federalmarginal tax brackets. For example, if you are in a 8.82% state tax bracket and a37.0% federal tax bracket, and subject to a 3.8% Medicare tax on investmentincome, your combined tax bracket would be 49.62% (8.82% + 37.0% + 3.8%).

• Then, divide the tax-exempt fund’s yield by the difference between 100% andyour combined tax bracket. Continuing with this example and assuming that youare considering a tax-exempt fund with a 4% yield, your taxable-equivalent yieldwould be 7.94% [4% divided by (100% – 49.62%)].

In this example, you would choose the state tax-exempt fund if itstaxable-equivalent yield of 7.94% were greater than the yield of a similar, thoughtaxable, investment.

12

Page 17: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Remember that we have used assumed tax rates and brackets in the previousexample. Actual taxable-equivalent yields depend on your individual tax situation.Make sure to verify your actual effective income and other applicable taxbrackets—federal, state, and local (if any)—before calculating taxable-equivalentyields of your own.

Also consider the impact of any recent changes to federal, state, or local tax lawon this calculation. The above taxable-equivalent yield calculation assumes aninvestor does not itemize his or her deductions, including state taxes, on his orher federal return.

There is no guarantee that all of a tax-exempt fund’s income from itsmunicipal bonds will remain exempt from federal, state, or local incometaxes. Income from municipal bonds held by a fund could be declaredtaxable, possibly with retroactive effect, because of unfavorable changes intax laws, adverse interpretations by the Internal Revenue Service (IRS) orstate or local tax authorities, or noncompliant conduct of a bond issuer.

13

Page 18: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Investing in Money Market Funds

What is Money Market Fund Reform?In July 2014, the Securities and Exchange Commission (SEC) implemented anumber of regulatory changes designed to enhance the stability and resilience ofall money market funds. The reforms have created three categories of moneymarket funds:

• Retail money market funds, which may maintain a stable net asset value (NAV)but are subject to liquidity fees and redemption gates.

• Government money market funds, which may maintain a stable NAV but arenot required to implement liquidity fees and redemption gates.

• Institutional money market funds, which are required to have a floating NAVand are subject to liquidity fees and redemption gates.

The board of trustees of Vanguard New York Municipal Money Market Fund (theBoard), in accordance with the best interest of the shareholders, approved anumber of changes in response to the SEC’s 2014 amendments to the rulesgoverning money market funds. These changes—including the Board’s ability toimplement liquidity fees and redemption gates if Vanguard New York MunicipalMoney Market Fund’s weekly liquid assets fall below establishedthresholds—are now in effect. As part of these changes, information regardingthe Fund’s weekly liquid assets for the prior six months (by day, as of the closeof business) is available on the Fund’s Portfolio page at vanguard.com.

How Does This Affect Vanguard Money Market Funds?The money market fund reforms impact money market funds differentlydepending on the types of investors permitted to invest in a fund and the typesof securities in which a fund may invest.

Vanguard New York Municipal Money Market FundVanguard has designated Vanguard New York Municipal Money Market Fund as aretail money market fund.

Retail money market funds are defined as prime or municipal money marketfunds that have policies and procedures reasonably designed to limit allbeneficial owners of such money market funds to natural persons. Retail moneymarket funds are permitted to continue to maintain a stable NAV through theuse of amortized cost accounting. If a retail money market fund’s weekly liquidassets fall below a certain threshold, the retail money market fund may besubject to liquidity fees and redemption gates.

There are two types of liquidity fees: discretionary liquidity fees and defaultliquidity fees. Liquidity fees are designed to transfer the costs of liquidatingsecurities from shareholders who remain in the Fund to those who leave theFund during periods when liquidity is limited.

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Page 19: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Discretionary liquidity fee. The Fund may impose a liquidity fee of up to 2% onall redemptions in the event that the Fund’s weekly liquid assets fall below 30%of its total assets if the Board determines that it is in the best interest of theFund. Subject to practical limitations necessary to implement the fee, thediscretionary liquidity fee may be implemented the same day that the Boarddetermines to impose a fee. Once the Fund has restored its weekly liquid assetsto 30% of total assets, any liquidity fee must be suspended.

Default liquidity fee. The Fund is required to impose a liquidity fee of 1% on allredemptions in the event that the Fund’s weekly liquid assets fall below 10% ofits total assets unless the Board determines that (1) the fee is not in the bestinterest of the Fund or (2) a lesser/higher fee (up to 2%) is in the best interest ofthe Fund. A default liquidity fee is required to be implemented the business dayafter the Board determines to impose a fee.

In addition to, or in lieu of, the liquidity fee, the Fund is permitted to implementtemporarily a redemption gate (i.e., suspend redemptions) if the Fund’s weeklyliquid assets fall below 30% of its total assets. The gate could remain in effectfor no longer than 10 days in any 90-day period. Once the Fund has restored itsweekly liquid assets to 30% of total assets, the gate must be lifted.

Once the Fund imposes a redemption gate, then unprocessed orders to redeemor exchange will be canceled and the Fund will not accept redemption orexchange orders until the gate is no longer in effect. If you still wish to redeemor exchange once the gate is lifted, you will need to submit a new redemption orexchange request to the Fund or your financial intermediary.

The Board also may determine that it would not be in the interests of the Fundto continue operating if the Fund’s weekly liquid assets fall below 10% of itstotal assets. In the event that the Board approves liquidation of the Fund underthese circumstances, the Fund may permanently suspend redemptionsand liquidate.

Notices regarding liquidity fees or redemption gates will be filed with the SEC onForm N-CR. In addition, announcements will also be made in supplements to theFund’s prospectus and on the Fund’s website at vanguard.com.

The Fund is subject to money market fund reform regulatory risk, which is thechance that money market fund reforms will affect the Fund’s investmentstrategy, fees and expenses, portfolio, share liquidity, and return potential as aresult of the implemented rules.

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More on the Funds

This prospectus describes the principal risks you would face as a Fundshareholder. It is important to keep in mind one of the main principles ofinvesting: generally, the higher the risk of losing money, the higher the potentialreward. The reverse, also, is generally true: the lower the risk, the lower thepotential reward. As you consider an investment in any mutual fund, you shouldtake into account your personal tolerance for fluctuations in the securitiesmarkets. Look for this symbol throughout the prospectus. It is used tomark detailed information about the more significant risks that you wouldconfront as a Fund shareholder. To highlight terms and concepts important tomutual fund investors, we have provided Plain Talk® explanations along the way.Reading the prospectus will help you decide whether a Fund is the rightinvestment for you. We suggest that you keep this prospectus forfuture reference.

Share Class OverviewVanguard New York Long-Term Tax-Exempt Fund offers two separate classes ofshares: Investor Shares and Admiral Shares.

Both share classes offered by the Fund have the same investment objective,strategies, and policies. However, different share classes have differentexpenses; as a result, their investment returns will differ.

Plain Talk About Costs of Investing

Costs are an important consideration in choosing a mutual fund. That isbecause you, as a shareholder, pay a proportionate share of the costs ofoperating a fund and any transaction costs incurred when the fund buys orsells securities. These costs can erode a substantial portion of the grossincome or the capital appreciation a fund achieves. Even seemingly smalldifferences in expenses can, over time, have a dramatic effect on afund’s performance.

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The following sections explain the principal investment strategies and policiesthat each Fund uses in pursuit of its objective. The Funds’ board of trustees,which oversees each Fund’s management, may change investment strategies orpolicies in the interest of shareholders without a shareholder vote, unless thosestrategies or policies are designated as fundamental.

Market ExposureThe Funds invest primarily in New York state and local municipal bonds thatprovide tax-exempt income. As a result, they are subject to certain risks.

Each Fund is subject to state-specific risk, which is the chance thatdevelopments in New York, such as tax, legislative, or political changes,will adversely affect the securities held by the Fund or that are availablefor investment by the Fund. Because each Fund invests primarily insecurities issued by New York and its municipalities, it is more vulnerableto the credit risk and unfavorable developments in New York than arefunds that invest in municipal securities of many states. Unfavorabledevelopments in any economic sector may have far-reachingramifications on the overall New York municipal market.

Each Fund is subject to credit risk, which is the chance that the issuer of asecurity will fail to pay interest or principal in a timely manner or thatnegative perceptions of the issuer’s ability to make such payments willcause the price of that security to decline. Credit risk should be very lowfor the New York Municipal Money Market Fund because it investsprimarily in securities that are considered to be of high quality.

The New York Municipal Money Market Fund invests primarily in high-quality,short-term New York municipal securities. The New York Long-Term Tax-ExemptFund tries to minimize credit risk by investing mostly in high-quality securitiesand by continuously monitoring the credit quality of its holdings.

Plain Talk About Credit Quality

A bond’s credit quality rating is an assessment of the issuer’s ability to payinterest on the bond and, ultimately, to repay the principal. The lower thecredit quality, the greater the perceived chance that the bond issuer willdefault, or fail to meet its payment obligations. All things being equal, thelower a bond’s credit quality, the higher its yield should be to compensateinvestors for assuming additional risk.

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The New York Long-Term Tax-Exempt Fund is subject to interest rate risk,which is the chance that bond prices will decline because of risinginterest rates. Interest rate risk should be high for the Fund because itinvests primarily in long-term bonds, whose prices are more sensitive tointerest rate changes than are the prices of shorter-term bonds.

Although bonds are often thought to be less risky than stocks, there have beenperiods when bond prices have fallen significantly because of rising interestrates. For instance, prices of long-term bonds fell by almost 48% betweenDecember 1976 and September 1981.

To illustrate the relationship between bond prices and interest rates, thefollowing table shows the effect of a 1% and a 2% change (both up and down) ininterest rates on the value of a noncallable bond (i.e., a bond that cannot beredeemed by the issuer) with a face value of $1,000.

How Interest Rate Changes Affect the Value of a $1,000 Bond

Coupon/Average Maturity After a 1%Increase

After a 1%Decrease

After a 2%Increase

After a 2%Decrease

4%/15 years $895 $1,120 $804 $1,258

These figures are for illustration only; you should not regard them as anindication of future performance of the bond market as a whole or the Fundin particular.

Plain Talk About Bonds and Interest Rates

As a rule, when interest rates rise, bond prices fall. The opposite is also true:Bond prices go up when interest rates fall. Why do bond prices and interestrates move in opposite directions? Let’s assume that you hold a bondoffering a 4% yield. A year later, interest rates are on the rise and bonds ofcomparable quality and maturity are offered with a 5% yield. Withhigher-yielding bonds available, you would have trouble selling your 4% bondfor the price you paid—you would probably have to lower your asking price.On the other hand, if interest rates were falling and 3% bonds were beingoffered, you should be able to sell your 4% bond for more than you paid.

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Plain Talk About Weighted Average Maturity and Weighted AverageLife

A money market fund will maintain a dollar-weighted average maturity(WAM) of 60 days or less and a dollar-weighted average life (WAL) of 120days or less. For purposes of calculating a fund’s WAM, the maturity ofcertain longer-term adjustable-rate securities held in the portfolio willgenerally be the period remaining until the next interest rate adjustment.When calculating its WAL, the maturity for these adjustable-rate securitieswill generally be the final maturity date—the date on which principal isexpected to be returned in full. Maintaining a WAL of 120 days or less limitsa fund’s ability to invest in longer-term adjustable-rate securities, which aregenerally more sensitive to changes in interest rates, particularly involatile markets.

Changes in interest rates can affect bond income as well as bond prices.

Each Fund is subject to income risk, which is the chance that the Fund’sincome will decline because of falling interest rates. A fund‘s incomedeclines when interest rates fall because the fund then must invest newcash flow and cash from maturing instruments in lower-yieldinginstruments. Income risk is generally higher for short-term bond fundsand lower for long-term bond funds.

Plain Talk About Bond Maturities

A bond is issued with a specific maturity date—the date when the issuermust pay back the bond’s principal (face value). Bond maturities range fromless than 1 year to more than 30 years. Typically, the longer a bond’s maturity,the more price risk you, as a bond investor, will face as interest ratesrise—but also the higher the potential yield you could receive. Longer-termbonds are more suitable for investors willing to take a greater risk of pricefluctuations to get higher and more stable interest income. Shorter-termbond investors should be willing to accept lower yields and greater incomevariability in return for less fluctuation in the value of their investment. Thestated maturity of a bond may differ from the effective maturity of a bond,which takes into consideration that an action such as a call or refunding maycause bonds to be repaid before their stated maturity dates.

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Although falling interest rates tend to strengthen bond prices, they can causeanother problem for bond fund investors—bond calls.

The New York Long-Term Tax-Exempt Fund is subject to call risk, which isthe chance that during periods of falling interest rates, issuers of callablebonds may call (redeem) securities with higher coupon rates or interestrates before their maturity dates. The Fund would then lose any priceappreciation above the bond’s call price and would be forced to reinvestthe unanticipated proceeds at lower interest rates, resulting in a declinein the Fund’s income. Such redemptions and subsequent reinvestmentswould also increase the Fund’s portfolio turnover rate.

Call risk is generally negligible for money market securities and high forlong-term bond funds. The greater the call risk, the greater the chance for adecline in income and the potential for taxable capital gains. Longer-term bonds,like those held by the New York Long-Term Tax-Exempt Fund, generally have callprotection, which is assurance to investors that a bond will not be called for acertain length of time.

Plain Talk About Callable Bonds

Although bonds are issued with clearly defined maturities, in some cases thebond issuer has a right to call in (redeem) the bond earlier than its maturitydate. When a bond is called, the bondholder must replace it with anotherbond that may have a lower yield than the original bond. One way for bondinvestors to protect themselves against call risk is to purchase a bond earlyin its lifetime, long before its call date. Another way is to buy bonds withlower coupon rates or interest rates, which make them less likely tobe called.

The New York Long-Term Tax-Exempt Fund is subject to extension risk,which is the chance that during periods of rising interest rates, Extensionrisk is generally high for long-term bond funds.

Security SelectionEach Fund invests primarily in municipal securities issued by New York state orlocal governments, as well as by regional governmental and public financingauthorities. Each Fund may also invest in municipal securities issued by certainU.S. territories. As a matter of fundamental policy, each Fund will normally investat least 80% of its assets in securities whose income is exempt from federal

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and New York state taxes. The New York Municipal Money Market Fund maycount securities that generate income subject to the alternative minimum taxtoward the 80% investment requirement.

Vanguard, advisor to the Funds, uses a hub-and-satellite approach to managingthe New York Long-Term Tax-Exempt Fund. This allows for a team-oriented andconsistent management process. The hub, composed of senior leaders, focuseson the macroeconomic outlook, high level risk allocation, and process oversight.Satellites, composed of portfolio managers, credit and quantitative analysts, andtraders, construct the portfolio using the parameters set by the hub. For the NewYork Municipal Money Market Fund, Vanguard selects high-quality moneymarket instruments.

The New York Long-Term Tax-Exempt Fund is subject to liquidity risk,which is the chance that the Fund may not be able to sell a security in atimely manner at a desired price.

Municipal securities are traded via a network among dealers and brokers thatconnect buyers with sellers. Liquidity in the tax-exempt bond market may bereduced as a result of overall economic conditions and credit tightening. Theremay be little trading in the secondary market for particular bonds and other debtsecurities, which may make them more difficult to value or sell.

Up to 20% of each Fund’s assets may be invested in securities that are subjectto the alternative minimum tax.

Plain Talk About Alternative Minimum Tax

Certain tax-exempt bonds whose proceeds are used to fund private, for-profitorganizations may be considered “tax-preference items” for purposes of thealternative minimum tax (AMT)—a special tax system designed to ensurethat individuals pay at least a certain level of federal taxes. Although AMTbond income is exempt from federal income tax, taxpayers may have to payAMT on the income from bonds considered “tax-preference items.”

Under normal circumstances, the New York Municipal Money Market Fundinvests at least 80% of its assets in a variety of high-quality, short-term New Yorkmunicipal securities. The Fund seeks to provide a stable net asset value of $1 pershare by investing in securities with effective maturities of 397 days or less, bymaintaining a dollar-weighted average maturity of 60 days or less, and bymaintaining a dollar-weighted average life of 120 days or less. An investment in a

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money market fund is neither insured nor guaranteed by the U.S. government,and there can be no assurance that the Fund will be able to maintain a stable netasset value of $1 per share.

Under certain circumstances, the exposure to a single issuer could cause theNew York Municipal Money Market Fund to fail to maintain a share price of $1.

In normal market conditions, the New York Long-Term Tax-Exempt Fund investsat least 80% of its assets in investment-grade (or high-quality) municipalsecurities, as determined by a nationally recognized statistical rating organization(NRSRO) or determined to be of comparable quality by the advisor, emphasizingwell-diversified, highly-rated municipal bonds. Under normal conditions andsubject to state economic conditions, no more than 20% of the Fund’s assetsmay be invested in municipal securities that are non-investment-grade, asdetermined by an NRSRO or determined to be of comparable quality by theadvisor. The Fund may continue to hold bonds that have been downgraded, evenif they would no longer be eligible for purchase by the Fund.

The New York Long-Term Tax-Exempt Fund has no limitations as to the maturitiesof the securities in which it invests. However, the Fund is expected to maintain adollar-weighted average maturity between 10 and 25 years.

As tax-advantaged investments, the Funds are vulnerable to federal and NewYork state tax law changes (for instance, the IRS could rule that the income fromcertain types of state-issued bonds would no longer be considered tax-exempt).

Each Fund is subject to nondiversification risk, which is the chance thatthe Fund’s performance may be hurt disproportionately by the poorperformance of relatively few securities. Each Fund is considerednondiversified, which means that it may invest a greater percentage of itsassets in the securities of particular issuers as compared with diversifiedmutual funds.

Even though the Funds are nondiversified, they try to minimize credit risk bypurchasing a wide selection of New York municipal securities. As a result, thereis less chance that a Fund will be hurt significantly by a particular bond issuer’sfailure to pay either principal or interest.

Each Fund is subject to manager risk, which is the chance that poorsecurity selection will cause the Fund to underperform relevantbenchmarks or other funds with a similar investment objective.

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Other Investment Policies and RisksIn addition to investing in high-quality municipal securities, each Fund may makeother kinds of investments to achieve its objective. Some of these investmentsmay generate taxable income, and thus the Fund may need to distribute incomesubject to federal or New York personal income tax or the alternativeminimum tax.

Each Fund may purchase tax-exempt securities on a “when-issued” basis. Wheninvesting in “when-issued” securities, the Fund agrees to buy the securities at acertain price on a certain date, even if the market price of the securities at thetime of delivery is higher or lower than the agreed-upon purchase price.

Each Fund may invest in derivatives. In general, investments inderivatives may involve risks different from, and possibly greater than,those of investments directly in the underlying securities or assets.

Generally speaking, a derivative is a financial contract whose value is based onthe value of a financial asset (such as a stock, a bond, or a currency), a physicalasset (such as gold, oil, or wheat), a market index, or a reference rate. The NewYork Long-Term Tax-Exempt Fund may invest in derivatives only if the expectedrisks and rewards of the derivatives are consistent with the investmentobjective, policies, strategies, and risks of the Fund as disclosed in thisprospectus. In particular, derivatives will be used only when they may help theadvisor to accomplish one or more of the following:

• Invest in eligible asset classes with greater efficiency and lower cost than ispossible through direct investment.

• Add value when these instruments are attractively priced.

• Adjust sensitivity to changes in interest rates.

The Fund’s derivative investments may include fixed income futures contracts,fixed income options, interest rate swaps, total return swaps, credit defaultswaps, or other derivatives. Losses (or gains) involving futures contracts cansometimes be substantial—in part because a relatively small price movement ina futures contract may result in an immediate and substantial loss (or gain) for afund. Similar risks exist for other types of derivatives.

The New York Municipal Money Market Fund may invest in derivatives that, inthe advisor’s opinion, are consistent with the Fund’s objective of maintaining astable $1 share price and producing current tax-exempt income. The Fundintends to use derivatives to increase diversification while maintaining its qualitystandards. There are many types of derivatives, including those in which thetax-exempt interest rate is determined by reference to an index or swapagreement or by some other formula.

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In addition, each Fund may invest in tender option bond programs, a type ofmunicipal derivative that allows the purchaser to receive a variable rate oftax-exempt income from a trust entity that holds long-term municipal bonds orpreferred shares issued by a tax-exempt bond fund. Each Fund may also invest inlong-term municipal securities combined with a demand feature (e.g., variablerate demand notes or VRDNs), which represents the right to sell the instrumentback to the remarketer or liquidity provider, usually a bank, for repurchase onshort notice, normally one day or seven days. Derivatives are subject to certainstructural risks that, in unexpected circumstances, could cause the Fund’sshareholders to lose money or receive taxable income.

Plain Talk About Derivatives

Derivatives can take many forms. Some forms of derivatives—such asexchange-traded futures and options on securities, commodities, orindexes—have been trading on regulated exchanges for decades. Thesetypes of derivatives are standardized contracts that can easily be bought andsold and whose market values are determined and published daily. On theother hand, non-exchange-traded derivatives—such as certain swapagreements—tend to be more specialized or complex and may be moredifficult to accurately value.

Cash ManagementEach Fund’s daily cash balance may be invested in Vanguard Market LiquidityFund and/or Vanguard Municipal Cash Management Fund (each, a CMT Fund),which are low-cost money market funds. When investing in a CMT Fund, eachFund bears its proportionate share of the expenses of the CMT Fund in which itinvests. Vanguard receives no additional revenue from Fund assets invested in aCMT Fund. Investment in a CMT Fund may generate taxable income for a Fundand potentially may require the Fund to distribute income subject to federal orNew York personal income tax or the alternative minimum tax.

Methods Used to Meet Redemption RequestsUnder normal circumstances, each Fund typically expects to meet redemptionswith positive cash flows. When this is not an option, each Fund seeks tomaintain its risk exposure by selling a cross section of the Fund’s holdings tomeet redemptions, while also factoring in transaction costs. Additionally, a Fundmay work with larger clients to implement their redemptions in a manner that isleast disruptive to the portfolio; see “Potentially disruptive redemptions” underRedeeming Shares in the Investing With Vanguard section.

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Under certain circumstances, including under stressed market conditions, thereare additional tools that each Fund may use in order to meet redemptions,including advancing the settlement of market trades with counterparties tomatch investor redemption payments or delaying settlement of an investor’stransaction to match trade settlement within regulatory requirements. A Fundmay also suspend payment of redemption proceeds for up to seven days; see“Emergency circumstances” under Redeeming Shares in the Investing WithVanguard section. Additionally under these unusual circumstances, a Fund mayborrow money (subject to certain regulatory conditions and if available underboard-approved procedures) through an interfund lending facility or through abank line-of-credit, including a joint committed credit facility, in order to meetredemption requests.

Temporary Investment MeasuresEach Fund may temporarily depart from its normal investment policies andstrategies—for instance, by allocating substantial assets to cash equivalentinvestments, U.S. Treasury securities, other investment companies (includingexchange-traded funds), or short-term municipal securities issued outside ofNew York—in response to adverse or unusual market, economic, political, orother conditions. Such conditions could include a temporary decline in theavailability of New York municipal obligations. By temporarily departing from itsnormal investment policies, the Fund may distribute income subject to federal orNew York state personal income tax or the alternative minimum tax and mayotherwise fail to achieve its investment objective.

Plain Talk About Cash Equivalent Investments

For mutual funds that hold cash equivalent investments, “cash” does notmean literally that the fund holds a stack of currency. Rather, cash refers toshort-term, interest-bearing securities that can easily and quickly beconverted to currency. Most mutual funds keep at least a small percentageof assets in cash to accommodate shareholder redemptions. While somefunds strive to keep cash levels at a minimum and to always remain fullyinvested in bonds, other bond funds allow investment advisors to hold up to20% or more of a fund’s assets in cash equivalent investments.

Frequent Trading or Market-TimingBackground. Some investors try to profit from strategies involving frequenttrading of mutual fund shares, such as market-timing. For funds holding foreignsecurities, investors may try to take advantage of an anticipated differencebetween the price of the fund’s shares and price movements in overseas

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markets, a practice also known as time-zone arbitrage. Investors also may try toengage in frequent trading of funds holding investments such as small-capstocks and high-yield bonds. As money is shifted into and out of a fund by ashareholder engaging in frequent trading, the fund incurs costs for buying andselling securities, resulting in increased brokerage and administrative costs.These costs are borne by all fund shareholders, including the long-term investorswho do not generate the costs. In addition, frequent trading may interfere withan advisor’s ability to efficiently manage the fund.

Policies to address frequent trading. The Vanguard funds (other than moneymarket funds and short-term bond funds, but including Vanguard Short-TermInflation-Protected Securities Index Fund) do not knowingly accommodatefrequent trading. The board of trustees of each Vanguard fund (other than moneymarket funds and short-term bond funds, but including Vanguard Short-TermInflation-Protected Securities Index Fund) has adopted policies and proceduresreasonably designed to detect and discourage frequent trading and, in somecases, to compensate the fund for the costs associated with it. These policiesand procedures do not apply to ETF Shares because frequent trading in ETFShares generally does not disrupt portfolio management or otherwise harm fundshareholders. Although there is no assurance that Vanguard will be able todetect or prevent frequent trading or market-timing in all circumstances, thefollowing policies have been adopted to address these issues:

• Each Vanguard fund reserves the right to reject any purchaserequest—including exchanges from other Vanguard funds—without notice andregardless of size. For example, a purchase request could be rejected becausethe investor has a history of frequent trading or if Vanguard determines that suchpurchase may negatively affect a fund’s operation or performance.

• Each Vanguard fund (other than money market funds and short-term bondfunds, but including Vanguard Short-Term Inflation-Protected Securities IndexFund) generally prohibits, except as otherwise noted in the Investing WithVanguard section, an investor’s purchases or exchanges into a fund account for30 calendar days after the investor has redeemed or exchanged out of thatfund account.

• Certain Vanguard funds charge shareholders purchase and/or redemption feeson transactions.

See the Investing With Vanguard section of this prospectus for further detailson Vanguard’s transaction policies.

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Each Vanguard fund (other than retail and government money market funds), indetermining its net asset value, will use fair-value pricing when appropriate, asdescribed in the Share Price section. Fair-value pricing may reduce or eliminatethe profitability of certain frequent-trading strategies.

Do not invest with Vanguard if you are a market-timer.

Turnover RateAlthough the New York Long-Term Tax-Exempt Fund generally seeks to invest forthe long term, it may sell securities regardless of how long they have been held.The Financial Highlights section of this prospectus shows historical turnoverrates for this Fund. (Turnover rates are not meaningful for money market fundsbecause their holdings are so short-term.) A turnover rate of 100%, for example,would mean that the Fund had sold and replaced securities valued at 100% of itsnet assets within a one-year period. In general, the greater the turnover rate, thegreater the impact transaction costs will have on a fund’s return. Also, fundswith high turnover rates may be more likely to generate capital gains, includingshort-term capital gains, that must be distributed to shareholders and will betaxable to shareholders investing through a taxable account.

The Funds and Vanguard

Each Fund is a member of The Vanguard Group, a family of over 200 funds. All ofthe funds that are members of The Vanguard Group (other than funds of funds)share in the expenses associated with administrative services and businessoperations, such as personnel, office space, and equipment.

Vanguard Marketing Corporation provides marketing services to the funds.Although fund shareholders do not pay sales commissions or 12b-1 distributionfees, each fund (other than a fund of funds) or each share class of a fund (in thecase of a fund with multiple share classes) pays its allocated share of theVanguard funds’ marketing costs.

Plain Talk About Vanguard’s Unique Corporate Structure

The Vanguard Group is owned jointly by the funds it oversees and thusindirectly by the shareholders in those funds. Most other mutual funds areoperated by management companies that are owned by third parties—eitherpublic or private stockholders—and not by the funds they serve.

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Investment Advisor

The Vanguard Group, Inc., P.O. Box 2600, Valley Forge, PA 19482, which beganoperations in 1975, serves as advisor to the Funds through its Fixed IncomeGroup. As of November 30, 2019, Vanguard served as advisor for approximately$4.9 trillion in assets. Vanguard provides investment advisory services to theFunds pursuant to the Funds’ Service Agreement and subject to the supervisionand oversight of the trustees and officers of the Funds.

For the fiscal year ended November 30, 2019, the advisory expensesrepresented an effective annual rate of each Fund’s average net assets asfollows: for the New York Municipal Money Market Fund, 0.03%; for the NewYork Long-Term Tax-Exempt Fund, 0.01%.

Under the terms of an SEC exemption, the Funds’ board of trustees may,without prior approval from shareholders, change the terms of an advisoryagreement with a third-party investment advisor or hire a new third-partyinvestment advisor—either as a replacement for an existing advisor or as anadditional advisor. Any significant change in a Fund’s advisory arrangements willbe communicated to shareholders in writing. As the Funds’ sponsor and overallmanager, Vanguard may provide investment advisory services to a Fund at anytime. Vanguard may also recommend to the board of trustees that an advisor behired, terminated, or replaced or that the terms of an existing advisoryagreement be revised. The Funds have filed an application seeking a similar SECexemption with respect to investment advisors that are wholly ownedsubsidiaries of Vanguard. If the exemption is granted, the Funds may rely on thenew SEC relief.

For a discussion of why the board of trustees approved each Fund’s investmentadvisory arrangement, see the most recent semiannual report to shareholderscovering the fiscal period ended May 31.

The managers primarily responsible for the day-to-day management of theFunds are:

Adam M. Ferguson, CFA, Portfolio Manager at Vanguard. He has been withVanguard since 2004, has worked in investment management since 2008, andhas managed the New York Long-Term Tax-Exempt Fund since 2013. Education:B.S., Wilmington University; M.B.A., Drexel University.

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John Grimes, CFA, Portfolio Manager at Vanguard. He has been with Vanguardsince 1998; has worked in investment management since 2008; and hasmanaged investment portfolios, including the New York Municipal Money MarketFund, since 2017. Education: B.A., Marquette University; M.B.A., SaintJoseph’s University.

The Funds’ Statement of Additional Information provides information about eachportfolio manager’s compensation, other accounts under management, andownership of shares of the Funds.

Dividends, Capital Gains, and Taxes

Fund DistributionsEach Fund distributes to shareholders virtually all of its net income (interest lessexpenses) as well as any net short-term or long-term capital gains realized fromthe sale of its holdings. Income dividends generally are declared daily anddistributed monthly; capital gains distributions, if any, generally occur annually inDecember. In addition, each Fund may occasionally make a supplementaldistribution at some other time during the year. You can receive distributions ofincome or capital gains in cash, or you can have them automatically reinvested inmore shares of the Fund.

Plain Talk About Distributions

As a shareholder, you are entitled to your portion of a fund’s income frominterest as well as capital gains from the fund’s sale of investments. Incomeconsists of interest the fund earns from its money market and bondinvestments. The portion of such dividends that is exempt from federalincome tax will be designated as “exempt-interest dividends.” Capital gainsare realized whenever the fund sells securities for higher prices than it paidfor them. These capital gains are either short-term or long-term, dependingon whether the fund held the securities for one year or less or for more thanone year.

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Basic Tax PointsA majority of the income dividends you receive from the Funds are expected tobe exempt from federal and New York state income taxes. In addition, youshould be aware of the following basic federal income tax points abouttax-exempt mutual funds:

• Distributions of capital gains and any investment income that is not exemptfrom federal income tax are taxable to you whether or not you reinvest theseamounts in additional Fund shares.

• Distributions declared in December—if paid to you by the end of January—aretaxable as if received in December.

• Any short-term capital gains distribution that you receive is taxable to you asordinary income.

• Any distribution of net long-term capital gains is taxable to you as long-termcapital gains, no matter how long you have owned shares in the Fund.

• Capital gains distributions may vary considerably from year to year as a resultof the Funds’ normal investment activities and cash flows.

• Exempt-interest dividends from a tax-exempt fund are taken into account indetermining the taxable portion of any Social Security or railroad retirementbenefits that you receive.

• Income paid from tax-exempt bonds whose proceeds are used to fund private,for-profit organizations may be subject to the federal alternative minimum tax.

• A sale or exchange of Fund shares is a taxable event. This means that you mayhave a capital gain to report as income, or a capital loss to report as a deduction,when you complete your tax return.

• If you redeem or exchange shares when the New York Municipal MoneyMarket Fund has imposed a liquidity fee, then the amount you receive for yourredemption will be reduced by the amount of the liquidity fee and will generallycause you to recognize a loss for tax purposes equal to the amount of that fee. Ifthe New York Municipal Money Market Fund has imposed a liquidity fee, it ispossible that the Fund may need to distribute to its remaining shareholders all ora portion of the amount of the fee collected. This distribution may be taxable toyou as ordinary income or may constitute a non-taxable return of capital.

• Any conversion between classes of shares of the same fund is a nontaxableevent. By contrast, an exchange between classes of shares of different funds isa taxable event.

• Vanguard (or your intermediary) will send you a statement each year showingthe tax status of all of your distributions.

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Individuals, trusts, and estates whose income exceeds certain thresholdamounts are subject to a 3.8% Medicare contribution tax on “net investmentincome.” Net investment income takes into account distributions paid by theFund (except exempt-interest dividends) and capital gains from any sale orexchange of Fund shares.

Income dividends and capital gains distributions that you receive, as well as yourgains or losses from any sale or exchange of Fund shares, may be subject tostate and local income taxes.

Income dividends from interest earned on municipal securities of a state or itspolitical subdivisions are generally exempt from that state’s income taxes.Almost all states, however, tax interest earned on municipal securities ofother states.

This prospectus provides general tax information only. Please consult your taxadvisor for detailed information about any tax consequences for you.

General InformationBackup withholding. By law, Vanguard must withhold 24% of any taxabledistributions or redemptions from your account if you do not:

• Provide your correct taxpayer identification number.

• Certify that the taxpayer identification number is correct.

• Confirm that you are not subject to backup withholding.

Similarly, Vanguard (or your intermediary) must withhold taxes from your accountif the IRS instructs us to do so. The backup withholding rules may also apply todistributions that are designated as exempt-interest dividends.

Foreign investors. Vanguard funds offered for sale in the United States(Vanguard U.S. funds), including the Funds offered in this prospectus, are notwidely available outside the United States. Non-U.S. investors should be awarethat U.S. withholding and estate taxes and certain U.S. tax reportingrequirements may apply to any investments in Vanguard U.S. funds. Foreigninvestors should visit the non-U.S. investors page on our website atvanguard.com for information on Vanguard’s non-U.S. products.

Invalid addresses. If an income dividend distribution or capital gains distributioncheck mailed to your address of record is returned as undeliverable, Vanguardwill automatically reinvest the distribution and all future distributions until youprovide us with a valid mailing address. Reinvestments will receive the net assetvalue calculated on the date of the reinvestment.

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Share Price

Share price, also known as net asset value (NAV), is calculated as of the close ofregular trading on the New York Stock Exchange (NYSE), generally 4 p.m.,Eastern time, on each day that the NYSE is open for business (a business day).In the rare event the NYSE experiences unanticipated disruptions and isunavailable at the close of the trading day, a Fund reserves the right to treat suchday as a business day and calculate NAVs as of the close of regular trading onthe Nasdaq (or another alternate exchange if the Nasdaq is unavailable, asdetermined at Vanguard’s discretion), generally 4 p.m., Eastern time. Each shareclass (other than for the money market fund) has its own NAV, which iscomputed by dividing the total assets, minus liabilities, allocated to the shareclass by the number of Fund shares outstanding for that class. The NAV pershare for the money market fund is computed by dividing the total assets, minusliabilities, of the Fund by the number of Fund shares outstanding. On U.S.holidays or other days when the NYSE is closed, the NAV is not calculated, andthe Funds do not sell or redeem shares.

Debt securities held by a Vanguard fund are valued based on informationfurnished by an independent pricing service or market quotations. When a funddetermines that pricing-service information or market quotations either are notreadily available or do not accurately reflect the value of a security, the security ispriced at its fair value (the amount that the owner might reasonably expect toreceive upon the current sale of the security).

The instruments held by a Vanguard retail or government money market fund arevalued on the basis of amortized cost. The values of any foreign securities heldby a fund are converted into U.S. dollars using an exchange rate obtained froman independent third party as of the close of regular trading on the NYSE. Thevalues of any mutual fund shares, including institutional money market fundshares, held by a fund are based on the NAVs of the shares. The values of anyETF shares or closed-end fund shares held by a fund are based on the marketvalue of the shares.

A fund also may use fair-value pricing on bond market holidays when the fund isopen for business (such as Columbus Day and Veterans Day). Fair-value pricesare determined by Vanguard according to procedures adopted by the board oftrustees. When fair-value pricing is employed, the prices of securities used by afund to calculate the NAV may differ from quoted or published prices for thesame securities.

Although the stable share price is not guaranteed, the NAV of Vanguard retailand government money market funds is expected to remain at $1 per share.Instruments are purchased and managed with that goal in mind.

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Vanguard fund share prices are published daily; share prices, along with moneymarket fund yields, are available on our website at vanguard.com/prices.

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Financial Highlights

Financial highlights information is intended to help you understand a fund’sperformance for the past five years (or, if shorter, its period of operations).Certain information reflects financial results for a single fund share. Total returnrepresents the rate that an investor would have earned or lost each period on aninvestment in a fund or share class (assuming reinvestment of all distributions).This information has been obtained from the financial statements audited byPricewaterhouseCoopers LLP, an independent registered public accounting firm,whose report, along with fund financial statements, is included in a fund’s mostrecent annual report to shareholders. You may obtain a free copy of a fund’slatest annual or semiannual report, which is available upon request.

Vanguard New York Municipal Money Market Fund Investor Shares

Year Ended November 30,For a Share Outstanding Throughout Each Period 2019 2018 2017 2016 2015Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00

Investment Operations

Net Investment Income 0.0141 0.0121 0.0071 0.003 0.0001Net Realized and Unrealized Gain (Loss) on Investments — — — — —Total from Investment Operations 0.014 0.012 0.007 0.003 0.0001Distributions

Dividends from Net Investment Income (0.014) (0.012) (0.007) (0.003) (0.0001)Distributions from Realized Capital Gains — — — — —Total Distributions (0.014) (0.012) (0.007) (0.003) (0.0001)Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00

Total Return2 1.39% 1.24% 0.67% 0.26% 0.01%

Ratios/Supplemental Data

Net Assets, End of Period (Millions) $3,454 $3,214 $2,424 $2,059 $2,190Ratio of Total Expenses to Average Net Assets 0.16% 0.16% 0.16% 0.13%3 0.06%3

Ratio of Net Investment Income to Average Net Assets 1.38% 1.24% 0.67% 0.25% 0.01%

1 Calculated based on average shares outstanding.2 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses

provide information about any applicable account service fees.3 The ratio of total expenses to average net assets before an expense reduction was 0.16% for 2016 and 0.16% for

2015. Vanguard and the board of trustees have agreed to temporarily limit certain net operating expenses inexcess of the fund’s daily yield in order to maintain a zero or positive yield for the fund. The fund is not obligatedto repay this amount to Vanguard.

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Vanguard New York Long-Term Tax-Exempt Fund Investor Shares

Year Ended November 30,For a Share Outstanding Throughout Each Period 2019 2018 2017 2016 2015Net Asset Value, Beginning of Period $11.34 $11.71 $11.49 $11.84 $11.77

Investment Operations

Net Investment Income 0.3541 0.3691 0.3721 0.384 0.390Net Realized and Unrealized Gain (Loss) on Investments 0.696 (0.314) 0.282 (0.343) 0.070Total from Investment Operations 1.050 0.055 0.654 0.041 0.460Distributions

Dividends from Net Investment Income (0.355) (0.369) (0.372) (0.380) (0.390)Distributions from Realized Capital Gains (0.025) (0.056) (0.062) (0.011) —Total Distributions (0.380) (0.425) (0.434) (0.391) (0.390)Net Asset Value, End of Period $12.01 $11.34 $11.71 $11.49 $11.84

Total Return2 9.37% 0.48% 5.76% 0.24% 3.97%

Ratios/Supplemental Data

Net Assets, End of Period (Millions) $550 $425 $464 $460 $423Ratio of Total Expenses to Average Net Assets 0.17% 0.17% 0.19% 0.19% 0.20%Ratio of Net Investment Income to Average Net Assets 3.00% 3.21% 3.18% 3.18% 3.26%Portfolio Turnover Rate 15% 18% 16% 18% 17%

1 Calculated based on average shares outstanding.2 Total returns do not include account service fees that may have applied in the periods shown.

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Vanguard New York Long-Term Tax-Exempt Fund Admiral Shares

Year Ended November 30,For a Share Outstanding Throughout Each Period 2019 2018 2017 2016 2015Net Asset Value, Beginning of Period $11.34 $11.71 $11.49 $11.84 $11.77

Investment Operations

Net Investment Income 0.3641 0.3781 0.3841 0.396 0.400Net Realized and Unrealized Gain (Loss) on Investments 0.695 (0.314) 0.282 (0.343) 0.070Total from Investment Operations 1.059 0.064 0.666 0.053 0.470Distributions

Dividends from Net Investment Income (0.364) (0.378) (0.384) (0.392) (0.400)Distributions from Realized Capital Gains (0.025) (0.056) (0.062) (0.011) —Total Distributions (0.389) (0.434) (0.446) (0.403) (0.400)Net Asset Value, End of Period $12.01 $11.34 $11.71 $11.49 $11.84

Total Return2 9.46% 0.56% 5.87% 0.34% 4.06%

Ratios/Supplemental Data

Net Assets, End of Period (Millions) $4,648 $3,956 $3,929 $3,527 $3,547Ratio of Total Expenses to Average Net Assets 0.09% 0.09% 0.09% 0.09% 0.12%Ratio of Net Investment Income to Average Net Assets 3.08% 3.29% 3.28% 3.28% 3.34%Portfolio Turnover Rate 15% 18% 16% 18% 17%

1 Calculated based on average shares outstanding.2 Total returns do not include account service fees that may have applied in the periods shown.

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Investing With Vanguard

This section of the prospectus explains the basics of doing business withVanguard. Vanguard fund shares can be held directly with Vanguard or indirectlythrough an intermediary, such as a bank, a broker, or an investment advisor. Ifyou hold Vanguard fund shares directly with Vanguard, you should carefully readeach topic within this section that pertains to your relationship with Vanguard. Ifyou hold Vanguard fund shares indirectly through an intermediary (includingshares held in a brokerage account through Vanguard Brokerage Services®),please see Investing With Vanguard Through Other Firms, and also refer to youraccount agreement with the intermediary for information about transacting inthat account. Vanguard reserves the right to change the following policieswithout notice. Please call or check online for current information. SeeContacting Vanguard.

For Vanguard fund shares held directly with Vanguard, each fund you hold in anaccount is a separate “fund account.” For example, if you hold three funds in anonretirement account titled in your own name, two funds in a nonretirementaccount titled jointly with your spouse, and one fund in an individual retirementaccount, you have six fund accounts—and this is true even if you hold the samefund in multiple accounts. Note that each reference to “you” in this prospectusapplies to any one or more registered account owners or persons authorized totransact on your account.

Purchasing Shares

Vanguard reserves the right, without notice, to increase or decrease theminimum amount required to open, convert shares to, or maintain a fundaccount or to add to an existing fund account.

Investment minimums may differ for certain categories of investors.

Account Minimums for Investor SharesTo open and maintain an account. $3,000. For Vanguard New York MunicipalMoney Market Fund, financial intermediaries and Vanguard-advised clientsshould contact Vanguard for information on special eligibility rules that may applyto them regarding Investor Shares. If you are investing through an intermediary,please contact that firm directly for more information regarding your eligibility.

To add to an existing account. Generally $1.

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Account Minimums for Admiral SharesTo open and maintain an account. $50,000. If you request Admiral Shareswhen you open a new account but the investment amount does not meet theaccount minimum for Admiral Shares, your investment will be placed in InvestorShares of the Fund. Financial intermediaries, institutional clients, andVanguard-advised clients should contact Vanguard for information on specialeligibility rules that may apply to them regarding Admiral Shares. If you areinvesting through an intermediary, please contact that firm directly for moreinformation regarding your eligibility.

To add to an existing account. Generally $1.

How to Initiate a Purchase RequestBe sure to check Exchanging Shares, Frequent-Trading Limitations, and OtherRules You Should Know before placing your purchase request.

Online. You may open certain types of accounts, request a purchase of shares,and request an exchange through our website or our mobile application if you areregistered for online access.

By telephone. You may call Vanguard to begin the account registration processor request that the account-opening forms be sent to you. You may also callVanguard to request a purchase of shares in your account or to request anexchange. See Contacting Vanguard.

By mail. You may send Vanguard your account registration form and check toopen a new fund account. To add to an existing fund account, you may send yourcheck with an Invest-by-Mail form (from a transaction confirmation or youraccount statement) or with a deposit slip (available online).

How to Pay for a PurchaseBy electronic bank transfer. You may purchase shares of a Vanguard fundthrough an electronic transfer of money from a bank account. To establish theelectronic bank transfer service on an account, you must designate the bankaccount online, complete a form, or fill out the appropriate section of youraccount registration form. After the service is set up on your account, you canpurchase shares by electronic bank transfer on a regular schedule (AutomaticInvestment Plan) or upon request. Your purchase request can be initiated online(if you are registered for online access), by telephone, or by mail.

By wire. Wiring instructions vary for different types of purchases. Please callVanguard for instructions and policies on purchasing shares by wire. SeeContacting Vanguard.

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By check. You may make initial or additional purchases to your fund account bysending a check with a deposit slip or by utilizing our mobile application if you areregistered for online access. Also see How to Initiate a Purchase Request. Makeyour check payable to Vanguard and include the appropriate fund number (e.g.,Vanguard—xx). For a list of Fund numbers (for Funds and share classes in thisprospectus), see Additional Information.

By exchange. You may purchase shares of a Vanguard fund using the proceedsfrom the simultaneous redemption of shares of another Vanguard fund. You mayinitiate an exchange online (if you are registered for online access), by telephone,or by mail with an exchange form. See Exchanging Shares.

Trade DateThe trade date for any purchase request received in good order will depend onthe day and time Vanguard receives your request, the manner in which you arepaying, and the type of fund you are purchasing. Your purchase will be executedusing the NAV as calculated on the trade date. See Share Price.

For purchases by check into all funds other than money market funds and forpurchases by exchange, wire, or electronic bank transfer into all funds: If thepurchase request is received by Vanguard on a business day before the close ofregular trading on the NYSE (generally 4 p.m., Eastern time), the trade date forthe purchase will be the same day. If the purchase request is received on abusiness day after the close of regular trading on the NYSE, or on a nonbusinessday, the trade date for the purchase will be the next business day.

For purchases by check into money market funds: If the purchase request isreceived by Vanguard on a business day before the close of regular trading onthe NYSE (generally 4 p.m., Eastern time), the trade date for the purchase will bethe next business day. If the purchase request is received on a business dayafter the close of regular trading on the NYSE, or on a nonbusiness day, the tradedate for the purchase will be the second business day following the dayVanguard receives the purchase request. Because money market instrumentsmust be purchased with federal funds and it takes a money market mutual fundone business day to convert check proceeds into federal funds, the trade date forthe purchase will be one business day later than for other funds.

If your purchase request is not accurate and complete, it may be rejected. SeeOther Rules You Should Know—Good Order.

For further information about purchase transactions, consult our website atvanguard.com or see Contacting Vanguard.

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Earning DividendsYou generally begin earning dividends on the business day following your tradedate. When buying money market fund shares through a federal funds wire on abusiness day, however, you generally can begin earning dividends immediatelyby making a purchase request by telephone to Vanguard before 10:45 a.m.,Eastern time (2 p.m., Eastern time, for Vanguard Prime Money Market Fund;12:30 p.m., Eastern time, for Vanguard Federal Money Market Fund).

Other Purchase Rules You Should KnowAdmiral Shares. Admiral Shares generally are not available for SIMPLE IRAs andVanguard Individual 401(k) Plans.

Check purchases. All purchase checks must be written in U.S. dollars, be drawnon a U.S. bank, and be accompanied by good order instructions. Vanguard doesnot accept cash, traveler’s checks, starter checks, or money orders. In addition,Vanguard may refuse checks that are not made payable to Vanguard.

New accounts. We are required by law to obtain from you certain personalinformation that we will use to verify your identity. If you do not provide theinformation, we may not be able to open your account. If we are unable to verifyyour identity, Vanguard reserves the right, without notice, to close your accountor take such other steps as we deem reasonable. Certain types of accounts mayrequire additional documentation.

Refused or rejected purchase requests. Vanguard reserves the right to stopselling fund shares or to reject any purchase request at any time and withoutnotice, including, but not limited to, purchases requested by exchange fromanother Vanguard fund. This also includes the right to reject any purchaserequest because the investor has a history of frequent trading or because thepurchase may negatively affect a fund’s operation or performance.

Large purchases. Call Vanguard before attempting to invest a largedollar amount.

No cancellations. Vanguard will not accept your request to cancel any purchaserequest once processing has begun. Please be careful when placing apurchase request.

Converting Shares

When a conversion occurs, you receive shares of one class in place of shares ofanother class of the same fund. At the time of conversion, the dollar value of the“new” shares you receive equals the dollar value of the “old” shares that were

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converted. In other words, the conversion has no effect on the value of yourinvestment in the fund at the time of the conversion. However, the number ofshares you own after the conversion may be greater than or less than thenumber of shares you owned before the conversion, depending on the NAVs ofthe two share classes.

Vanguard will not accept your request to cancel any self-directed conversionrequest once processing has begun. Please be careful when placing aconversion request.

A conversion between share classes of the same fund is a nontaxable event.

Trade DateThe trade date for any conversion request received in good order will depend onthe day and time Vanguard receives your request. Your conversion will beexecuted using the NAVs of the different share classes on the trade date. SeeShare Price.

For a conversion request received by Vanguard on a business day before theclose of regular trading on the NYSE (generally 4 p.m., Eastern time), the tradedate will be the same day. For a conversion request received on a business dayafter the close of regular trading on the NYSE, or on a nonbusiness day, the tradedate will be the next business day. See Other Rules You Should Know.

Conversions From Investor Shares to Admiral SharesSelf-directed conversions. If your account balance in the Fund is at least$50,000, you may ask Vanguard to convert your Investor Shares to AdmiralShares at any time. You may request a conversion through our website (if you areregistered for online access), by telephone, or by mail. Financial intermediaries,institutional clients, and Vanguard-advised clients should contact Vanguard forinformation on special eligibility rules that may apply to them regarding AdmiralShares. See Contacting Vanguard. If you are investing through an intermediary,please contact that firm directly for more information regarding your eligibility.

Automatic conversions. Vanguard conducts periodic reviews of accountbalances and may, if your account balance in the Fund exceeds $50,000,automatically convert your Investor Shares to Admiral Shares. You will be notifiedbefore an automatic conversion occurs and will have an opportunity to instructVanguard not to effect the conversion. Financial intermediaries, institutionalclients, and Vanguard-advised clients should contact Vanguard for information onspecial eligibility rules that may apply to them regarding Admiral Shares. If youare investing through an intermediary, please contact that firm directly for moreinformation regarding your eligibility.

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Mandatory Conversions to Investor SharesIf an account no longer meets the balance requirements for Admiral SharesVanguard may automatically convert the shares in the account to InvestorShares. A decline in the account balance because of market movement mayresult in such a conversion. Vanguard will notify the investor in writing before anymandatory conversion occurs.

Redeeming Shares

How to Initiate a Redemption RequestBe sure to check Exchanging Shares, Frequent-Trading Limitations, and OtherRules You Should Know before placing your redemption request.

Online. You may request a redemption of shares or request an exchange throughour website or our mobile application if you are registered for online access.

By telephone. You may call Vanguard to request a redemption of shares or anexchange. See Contacting Vanguard.

By mail. You may send a form (available online) to Vanguard to redeem from afund account or to make an exchange.

By writing a check. If you have established the checkwriting service on youraccount, you can redeem shares by writing a check for $250 or more.

How to Receive Redemption ProceedsBy electronic bank transfer. You may have the proceeds of a fund redemptionsent directly to a designated bank account. To establish the electronic banktransfer service on an account, you must designate a bank account online,complete a form, or fill out the appropriate section of your account registrationform. After the service is set up on your account, you can redeem shares byelectronic bank transfer on a regular schedule (Automatic Withdrawal Plan) orupon request. Your redemption request can be initiated online (if you areregistered for online access), by telephone, or by mail.

By wire. To receive your proceeds by wire, you may instruct Vanguard to wireyour redemption proceeds ($100 minimum) to a previously designated bankaccount. To establish the wire redemption service, you generally must designatea bank account online, complete a form, or fill out the appropriate section of youraccount registration form.

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Please note that Vanguard charges a $10 wire fee for outgoing wireredemptions. The fee is assessed in addition to, rather than being withheld from,redemption proceeds and is paid directly to the fund in which you invest. Forexample, if you redeem $100 via a wire, you will receive the full $100, and the$10 fee will be assessed to your fund account through an additional redemptionof fund shares. If you redeem your entire fund account, your redemptionproceeds will be reduced by the amount of the fee. The wire fee does not applyto accounts held by Flagship and Flagship Select clients; accounts held throughintermediaries, including Vanguard Brokerage Services; or accounts held byinstitutional clients.

By exchange. You may have the proceeds of a Vanguard fund redemptioninvested directly in shares of another Vanguard fund. You may initiate anexchange online (if you are registered for online access), by telephone, or bymail. See Exchanging Shares.

By check. If you have not chosen another redemption method, Vanguard will mailyou a redemption check, generally payable to all registered account owners,normally within two business days of your trade date, and generally to theaddress of record.

Trade DateThe trade date for any redemption request received in good order will depend onthe day and time Vanguard receives your request and the manner in which youare redeeming. Your redemption will be executed using the NAV as calculated onthe trade date. See Share Price.

For redemptions by check, exchange, or wire: If the redemption request isreceived by Vanguard on a business day before the close of regular trading onthe NYSE (generally 4 p.m., Eastern time), the trade date will be the same day. Ifthe redemption request is received on a business day after the close of regulartrading on the NYSE, or on a nonbusiness day, the trade date will be the nextbusiness day.

• Note on timing of wire redemptions from money market funds: Fortelephone requests received by Vanguard on a business day before10:45 a.m., Eastern time (2 p.m., Eastern time, for Vanguard Prime MoneyMarket Fund; 12:30 p.m., Eastern time, for Vanguard Federal Money MarketFund), the redemption proceeds generally will leave Vanguard by the close ofbusiness the same day. For telephone requests received by Vanguard on abusiness day after those cut-off times, or on a nonbusiness day, and for allrequests other than by telephone, the redemption proceeds generally willleave Vanguard by the close of business on the next business day.

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• Note on timing of wire redemptions from all other funds: For requestsreceived by Vanguard on a business day before the close of regular trading onthe NYSE (generally 4 p.m., Eastern time), the redemption proceeds generallywill leave Vanguard by the close of business on the next business day. Forrequests received by Vanguard on a business day after the close of regulartrading on the NYSE, or on a nonbusiness day, the redemption proceedsgenerally will leave Vanguard by the close of business on the second businessday after Vanguard receives the request.

For redemptions by electronic bank transfer: If the redemption request isreceived by Vanguard on a business day before the close of regular trading onthe NYSE (generally 4 p.m., Eastern time), the trade date will be the same day. Ifthe redemption request is received on a business day after the close of regulartrading on the NYSE, or on a nonbusiness day, the trade date will be the nextbusiness day.

If your redemption request is not accurate and complete, it may be rejected. Ifwe are unable to send your redemption proceeds by wire or electronic banktransfer because the receiving institution rejects the transfer, Vanguard will makeadditional efforts to complete your transaction. If Vanguard is still unable tocomplete the transaction, we may send the proceeds of the redemption to youby check, generally payable to all registered account owners, or use yourproceeds to purchase new shares of the fund from which you sold shares for thepurpose of the wire or electronic bank transfer transaction. See Other Rules YouShould Know—Good Order.

If your redemption request is received in good order, we typically expect thatredemption proceeds will be paid by a Fund within one business day of the tradedate; however, in certain circumstances, investors may experience a longersettlement period at the time of the transaction. For further information, see“Potentially disruptive redemptions” and “Emergency circumstances.”

For further information about redemption transactions, consult our website atvanguard.com or see Contacting Vanguard.

Earning DividendsYou generally will continue earning dividends until the first business dayfollowing your trade date. Generally, there are two exceptions to this rule: (1) Ifyou redeem shares by writing a check against your account, the shares will stopearning dividends on the day that your check posts to your account; and (2) Formoney market funds, if you redeem shares with a same-day wire request before

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10:45 a.m., Eastern time, on a business day (2 p.m., Eastern time, for VanguardPrime Money Market Fund; 12:30 p.m., Eastern time, for Vanguard FederalMoney Market Fund), the shares will stop earning dividends that same day.

Other Redemption Rules You Should KnowDocumentation for certain accounts. Special documentation may be requiredto redeem from certain types of accounts, such as trust, corporate, nonprofit, orretirement accounts. Please call us before attempting to redeem from thesetypes of accounts.

Potentially disruptive redemptions. Vanguard reserves the right to pay all orpart of a redemption in kind—that is, in the form of securities—if we reasonablybelieve that a cash redemption would negatively affect the fund’s operation orperformance or that the shareholder may be engaged in market-timing orfrequent trading. Under these circumstances, Vanguard also reserves the right todelay payment of the redemption proceeds for up to seven calendar days. Bycalling us before you attempt to redeem a large dollar amount, you may avoidin-kind or delayed payment of your redemption. Please see Frequent-TradingLimitations for information about Vanguard’s policies to limit frequent trading.

Recently purchased shares. Although you can redeem shares at any time,proceeds may not be made available to you until the fund collects payment foryour purchase. This may take up to seven calendar days for shares purchased bycheck or by electronic bank transfer. If you have written a check on a fund withcheckwriting privileges, that check may be rejected if your fund account does nothave a sufficient available balance.

Share certificates. Share certificates are no longer issued for Vanguard funds.Shares currently held in certificates cannot be redeemed, exchanged, converted,or transferred (reregistered) until you return the certificates (unsigned) toVanguard by registered mail.

Address change. If you change your address online or by telephone, there maybe up to a 14-day restriction on your ability to request check redemptions onlineand by telephone. You can request a redemption in writing (using a form availableonline) at any time. Confirmations of address changes are sent to both the oldand new addresses.

Payment to a different person or address. At your request, we can make yourredemption check payable, or wire your redemption proceeds, to a differentperson or send it to a different address. However, this generally requires thewritten consent of all registered account owners and may require additional

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documentation, such as a signature guarantee or a notarized signature. You mayobtain a signature guarantee from some commercial or savings banks, creditunions, trust companies, or member firms of a U.S. stock exchange.

No cancellations. Vanguard will not accept your request to cancel anyredemption request once processing has begun. Please be careful when placinga redemption request.

Emergency circumstances. Vanguard funds can postpone payment ofredemption proceeds for up to seven calendar days. In addition, Vanguard fundscan suspend redemptions and/or postpone payments of redemption proceedsbeyond seven calendar days at times when the NYSE is closed or duringemergency circumstances, as determined by the SEC. In connection with adetermination by the board of trustees, in accordance with Rule 22e-3 under theInvestment Company Act of 1940, a money market fund may suspendredemptions and postpone payment of redemption proceeds in order to facilitatean orderly liquidation of the fund. In addition, in accordance with Rule 2a-7 underthe Investment Company Act of 1940, the board of trustees of a retail orinstitutional money market fund may implement liquidity fees and redemptiongates if a retail or institutional money market fund‘s weekly liquid assets fallbelow established thresholds.

Exchanging Shares

An exchange occurs when you use the proceeds from the redemption of shares ofone Vanguard fund to simultaneously purchase shares of a different Vanguardfund.You can make exchange requests online (if you are registered for onlineaccess), by telephone, or by mail. See Purchasing Shares and Redeeming Shares.

If the NYSE is open for regular trading (generally until 4 p.m., Eastern time, on abusiness day) at the time an exchange request is received in good order, thetrade date generally will be the same day. See Other Rules You ShouldKnow—Good Order for additional information on all transaction requests.

Vanguard will not accept your request to cancel any exchange request onceprocessing has begun. Please be careful when placing an exchange request.

Call Vanguard before attempting to exchange a large dollar amount. By calling usbefore you attempt to exchange a large dollar amount, you may avoid delayed orrejected transactions.

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Please note that Vanguard reserves the right, without notice, to revise orterminate the exchange privilege, limit the amount of any exchange, or reject anexchange, at any time, for any reason. See Frequent-Trading Limitations foradditional restrictions on exchanges.

Frequent-Trading Limitations

Because excessive transactions can disrupt management of a fund and increasethe fund’s costs for all shareholders, the board of trustees of each Vanguard fundplaces certain limits on frequent trading in the funds. Each Vanguard fund (otherthan money market funds and short-term bond funds, but including VanguardShort-Term Inflation-Protected Securities Index Fund) limits an investor’spurchases or exchanges into a fund account for 30 calendar days after theinvestor has redeemed or exchanged out of that fund account. ETF Shares arenot subject to these frequent-trading limits.

For Vanguard Retirement Investment Program pooled plans, the limitations applyto exchanges made online or by telephone.

These frequent-trading limitations do not apply to the following:

• Purchases of shares with reinvested dividend or capital gains distributions.

• Transactions through Vanguard’s Automatic Investment Plan, AutomaticExchange Service, Direct Deposit Service, Automatic Withdrawal Plan, RequiredMinimum Distribution Service, and Vanguard Small Business Online®.

• Discretionary transactions through Vanguard Personal Advisor Services®,Vanguard Institutional Advisory Services®, and Vanguard Digital Advisor™.

• Redemptions of shares to pay fund or account fees.

• Redemptions of shares to remove excess shareholder contributions to certaintypes of retirement accounts (including, but not limited to, IRAs and VanguardIndividual 401(k) Plans).

• Transfers and reregistrations of shares within the same fund.

• Purchases of shares by asset transfer or direct rollover.

• Conversions of shares from one share class to another in the same fund.

• Checkwriting redemptions.

• Section 529 college savings plans.

• Certain approved institutional portfolios and asset allocation programs, as wellas trades made by funds or trusts managed by Vanguard or its affiliates thatinvest in other Vanguard funds. (Please note that shareholders of Vanguard’sfunds of funds are subject to the limitations.)

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For participants in employer-sponsored defined contribution plans,* thefrequent-trading limitations do not apply to:

• Purchases of shares with participant payroll or employer contributions orloan repayments.

• Purchases of shares with reinvested dividend or capital gains distributions.

• Distributions, loans, and in-service withdrawals from a plan.

• Redemptions of shares as part of a plan termination or at the direction ofthe plan.

• Transactions executed through the Vanguard Managed Account Program.

• Redemptions of shares to pay fund or account fees.

• Share or asset transfers or rollovers.

• Reregistrations of shares.

• Conversions of shares from one share class to another in the same fund.

• Exchange requests submitted by written request to Vanguard. (Exchangerequests submitted by fax, if otherwise permitted, are subject to the limitations.)

* The following Vanguard fund accounts are subject to the frequent-tradinglimitations: SEP-IRAs, SIMPLE IRAs, certain Individual 403(b)(7) CustodialAccounts, and Vanguard Individual 401(k) Plans.

Accounts Held by Institutions (Other Than Defined Contribution Plans)Vanguard will systematically monitor for frequent trading in institutional clients’accounts. If we detect suspicious trading activity, we will investigate and takeappropriate action, which may include applying to a client’s accounts the 30-daypolicy previously described, prohibiting a client’s purchases of fund shares,and/or revoking the client’s exchange privilege.

Accounts Held by IntermediariesWhen intermediaries establish accounts in Vanguard funds for the benefit oftheir clients, we cannot always monitor the trading activity of the individualclients. However, we review trading activity at the intermediary (omnibus) level,and if we detect suspicious activity, we will investigate and take appropriateaction. If necessary, Vanguard may prohibit additional purchases of fund sharesby an intermediary, including for the benefit of certain of the intermediary’sclients. Intermediaries also may monitor their clients’ trading activities withrespect to Vanguard funds.

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For those Vanguard funds that charge purchase and/or redemption fees,intermediaries will be asked to assess these fees on client accounts and remitthese fees to the funds. The application of purchase and redemption fees andfrequent-trading limitations may vary among intermediaries. There are noassurances that Vanguard will successfully identify all intermediaries or thatintermediaries will properly assess purchase and redemption fees or administerfrequent-trading limitations. If you invest with Vanguard through an intermediary,please read that firm’s materials carefully to learn of any other rules or fees thatmay apply.

Other Rules You Should Know

Prospectus and Shareholder Report MailingsWhen two or more shareholders have the same last name and address, just onesummary prospectus (or prospectus) and/or shareholder report may be sent inan attempt to eliminate the unnecessary expense of duplicate mailings. You mayrequest individual prospectuses and reports by contacting our Client ServicesDepartment by telephone or online. See Contacting Vanguard.

Vanguard.comRegistration. If you are a registered user of vanguard.com, you can review youraccount holdings; buy, sell, or exchange shares of most Vanguard funds; andperform most other transactions through our website. You must register for thisservice online.

Electronic delivery. Vanguard can deliver your account statements, transactionconfirmations, prospectuses, certain tax forms, and shareholder reportselectronically. If you are a registered user of vanguard.com, you can consent tothe electronic delivery of these documents by logging on and changing yourmailing preferences under “Account Maintenance.” You can revoke yourelectronic consent at any time through our website, and we will begin to sendpaper copies of these documents within 30 days of receiving your revocation.

Telephone TransactionsAutomatic. When we set up your account, we will automatically enable you todo business with us by telephone, unless you instruct us otherwise in writing.

Tele-Account®. To obtain fund and account information through Vanguard’sautomated telephone service, you must first establish a Personal IdentificationNumber (PIN) by calling Tele-Account at 800-662-6273.

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Proof of a caller’s authority. We reserve the right to refuse a telephone requestif the caller is unable to provide the requested information or if we reasonablybelieve that the caller is not an individual authorized to act on the account.Before we allow a caller to act on an account, we may request thefollowing information:

• Authorization to act on the account (as the account owner or by legaldocumentation or other means).

• Account registration and address.

• Fund name and account number, if applicable.

• Other information relating to the caller, the account owner, or the account.

Good OrderWe reserve the right to reject any transaction instructions that are not in “goodorder.” Good order generally means that your instructions:

• Are provided by the person(s) authorized in accordance with Vanguard’spolicies and procedures to access the account and request transactions.

• Include the fund name and account number.

• Include the amount of the transaction (stated in dollars, shares,or percentage).

Written instructions also must generally be provided on a Vanguard formand include:

• Signature(s) and date from the authorized person(s).*

• Signature guarantees or notarized signatures, if required for the type oftransaction. (Call Vanguard for specific requirements.)

• Any supporting documentation that may be required.*

*For Vanguard New York Municipal Money Market Fund, documentation may berequired to confirm that the beneficial owner is a natural person.

Good order requirements may vary among types of accounts and transactions.For more information, consult our website at vanguard.com or seeContacting Vanguard.

Vanguard reserves the right, without notice, to revise the requirements forgood order.

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Future Trade-Date RequestsVanguard does not accept requests to hold a purchase, conversion, redemption,or exchange transaction for a future date. All such requests will receive tradedates as previously described in Purchasing Shares, Converting Shares,Redeeming Shares, and Exchanging Shares. Vanguard reserves the right toreturn future-dated purchase checks.

Accounts With More Than One OwnerIf an account has more than one owner or authorized person, Vanguard generallywill accept instructions from any one owner or authorized person.

Responsibility for FraudYou should take precautions to protect yourself from fraud. Keep youraccount-related information private, and review any account confirmations,statements, or other information that we provide to you as soon as you receivethem. Let us know immediately if you discover unauthorized activity or seesomething on your account that you do not understand or that looks unusual.

Vanguard will not be responsible for losses that result from transactions by aperson who we reasonably believe is authorized to act on your account.

Uncashed ChecksPlease cash your distribution or redemption checks promptly. Vanguard will notpay interest on uncashed checks. Vanguard may be required to transfer assetsrelated to uncashed checks to a state under the state’s abandoned property law.

Dormant AccountsIf your account has no activity in it for a period of time, Vanguard may berequired to transfer it to a state under the state’s abandoned property law,subject to potential federal or state withholding taxes.

Unusual CircumstancesIf you experience difficulty contacting Vanguard online or by telephone, you cansend us your transaction request on a Vanguard form by regular or express mail.

Investing With Vanguard Through Other FirmsYou may purchase or sell shares of most Vanguard funds through a financialintermediary, such as a bank, a broker, or an investment advisor. Please consultyour financial intermediary to determine which, if any, shares are availablethrough that firm and to learn about other rules that may apply. Your financialintermediary can provide you with account information and any required taxforms. You may be required to pay a commission on purchases of mutual fund

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shares made through a financial intermediary. Your financial intermediary will beresponsible for taking reasonable actions to assist the retail or institutionalmoney market fund to impose, lift, or modify liquidity fees or redemption gates.

Please see Frequent-Trading Limitations—Accounts Held by Intermediaries forinformation about the assessment of any purchase or redemption fees and themonitoring of frequent trading for accounts held by intermediaries.

Account Service FeeVanguard may charge a $20 account service fee on fund accounts that have abalance below $10,000 for any reason, including market fluctuation. The accountservice fee applies to both retirement and nonretirement fund accounts and maybe assessed on fund accounts in all Vanguard funds, regardless of the accountminimum. The fee, which will be collected by redeeming fund shares in theamount of $20, will be deducted from fund accounts subject to the fee once percalendar year.

If you elect to receive your statements and other materials electronically (i.e., bye-delivery), the account service fee will not be charged, so long as your electionremains in effect. You can make your e-delivery election on vanguard.com.

Beginning on January 1, 2021, you may elect to receive paper copies ofshareholder reports free of charge as noted on the cover of this prospectus.

Certain account types have alternative fee structures, including SIMPLE IRAs,Vanguard Retirement Investment Program pooled plans, and Vanguard Individual401(k) Plans.

Low-Balance AccountsEach Fund reserves the right to liquidate a fund account whose balance fallsbelow the account minimum for any reason, including market fluctuation. Thisliquidation policy applies to nonretirement fund accounts and accounts that areheld through intermediaries. Any such liquidation will be preceded by writtennotice to the investor.

Right to Change PoliciesIn addition to the rights expressly stated elsewhere in this prospectus, Vanguardreserves the right, without notice, to (1) alter, add, or discontinue any conditionsof purchase (including eligibility requirements), redemption, exchange,conversion, service, or privilege at any time and (2) alter, impose, discontinue, orwaive any purchase fee, redemption fee, account service fee, or other fee

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charged to a shareholder or a group of shareholders. Changes may affect any orall investors. These actions will be taken when, at the sole discretion of Vanguardmanagement, Vanguard believes they are in the best interest of a fund.

Account RestrictionsVanguard reserves the right to: (1) redeem all or a portion of a fund/account tomeet a legal obligation, including tax withholding, tax lien, garnishment order, orother obligation imposed on your account by a court or government agency; (2)redeem shares, close an account, or suspend account privileges, features, oroptions in the case of threatening conduct or activity; (3) redeem shares, closean account, or suspend account privileges, features, or options if Vanguardbelieves or suspects that not doing so could result in a suspicious, fraudulent, orillegal transaction; (4) place restrictions on the ability to redeem any or all sharesin an account if it is required to do so by a court or government agency; (5) placerestrictions on the ability to redeem any or all shares in an account if Vanguardbelieves that doing so will prevent fraud, financial exploitation or abuse, or toprotect vulnerable investors; (6) freeze any account and/or suspend accountservices if Vanguard has received reasonable notice of a dispute regarding theassets in an account, including notice of a dispute between the registered orbeneficial account owners; and (7) freeze any account and/or suspend accountservices upon initial notification to Vanguard of the death of an account owner.

Share ClassesVanguard reserves the right, without notice, to change the eligibilityrequirements of its share classes, including the types of clients who are eligibleto purchase each share class.

Fund and Account Updates

Confirmation StatementsWe will send (or provide through our website, whichever you prefer) aconfirmation of your trade date and the amount of your transaction when youbuy, sell, exchange, or convert shares. However, we will not send confirmationsreflecting only checkwriting redemptions or the reinvestment of dividend orcapital gains distributions. For any month in which you had a checkwritingredemption, a Checkwriting Activity Statement will be sent to you itemizing thecheckwriting redemptions for that month. Promptly review each confirmationstatement that we provide to you. It is important that you contact Vanguardimmediately with any questions you may have about any transaction reflected ona confirmation statement, or Vanguard will consider the transactionproperly processed.

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Portfolio SummariesWe will send (or provide through our website, whichever you prefer) quarterlyportfolio summaries to help you keep track of your accounts throughout the year.Each summary shows the market value of your account at the close of thestatement period, as well as all distributions, purchases, redemptions,exchanges, transfers, and conversions for the current calendar quarter (ormonth). Promptly review each summary that we provide to you. It is importantthat you contact Vanguard immediately with any questions you may have aboutany transaction reflected on the summary, or Vanguard will consider thetransaction properly processed.

Tax Information StatementsFor most accounts, Vanguard (or your intermediary) is required to provide annualtax forms to assist you in preparing your income tax returns. These forms aregenerally available for each calendar year early in the following year. Registeredusers of vanguard.com can also view certain forms through our website.Vanguard (or your intermediary) may also provide you with additional tax-relateddocumentation. For more information, consult our website at vanguard.com orsee Contacting Vanguard.

Annual and Semiannual ReportsWe will send (or provide through our website, whichever you prefer) reportsabout Vanguard New York Tax-Exempt Funds twice a year, in January and July.These reports include overviews of the financial markets and provide thefollowing specific Fund information:

• Performance assessments and comparisons with industry benchmarks.

• Reports from the advisor.

• Financial statements with listings of Fund holdings.

Portfolio HoldingsPlease consult the Funds’ Statement of Additional Information or our website fora description of the policies and procedures that govern disclosure of a Fund’sportfolio holdings.

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Contacting Vanguard

WebVanguard.com For the most complete source of Vanguard news

For fund, account, and service informationFor most account transactionsFor literature requests24 hours a day, 7 days a week

PhoneVanguard Tele-Account®

800-662-6273For automated fund and account informationToll-free, 24 hours a day, 7 days a week

Investor Information 800-662-7447(Text telephone for people withhearing impairment at 800-749-7273)

For fund and service informationFor literature requests

Client Services 800-662-2739(Text telephone for people withhearing impairment at 800-749-7273)

For account informationFor most account transactions

Institutional Division888-809-8102

For information and services for large institutionalinvestors

Financial Advisor and IntermediarySales Support 800-997-2798

For information and services for financial intermediariesincluding financial advisors, broker-dealers, trustinstitutions, and insurance companies

Financial Advisory and IntermediaryTrading Support 800-669-0498

For account information and trading support forfinancial intermediaries including financial advisors,broker-dealers, trust institutions, and insurancecompanies

Additional Information

InceptionDate

NewspaperAbbreviation

VanguardFund Number

CUSIPNumber

New York Municipal Money Market Fund

Investor Shares 9/3/1997 VangNY 163 92204H202New York Long-Term Tax-Exempt Fund

Investor Shares 4/7/1986 NYLT 76 92204H103Admiral Shares 5/14/2001 NYLTAdml 576 92204H301

CGS identifiers have been provided by CUSIP Global Services, managed on behalf of the American BankersAssociation by Standard & Poor’s Financial Services, LLC, and are not for use or dissemination in a manner that wouldserve as a substitute for any CUSIP service. The CUSIP Database, ©2020 American Bankers Association. “CUSIP” is aregistered trademark of the American Bankers Association.

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CFA® is a registered trademark owned by CFA Institute.

BLOOMBERG is a trademark and service mark of Bloomberg Finance L.P. BARCLAYS is a trademark and service mark of Barclays BankPlc, used under license. Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (BISL) (collectively,Bloomberg), or Bloomberg’s licensors, own all proprietary rights in the Bloomberg Barclays NY Municipal Bond Index (the Index orBloomberg Barclays Index).

Neither Barclays Bank Plc, Barclays Capital Inc., or any affiliate (collectively Barclays) or Bloomberg is the issuer or producer of theNew York Long-Term Tax-Exempt Fund and neither Bloomberg nor Barclays has any responsibilities, obligations or duties to investorsin the New York Long-Term Tax-Exempt Fund. The Index is licensed for use by The Vanguard Group, Inc. (Vanguard) as the sponsor ofthe New York Long-Term Tax-Exempt Fund. Bloomberg and Barclays’ only relationship with Vanguard in respect to the Index is thelicensing of the Index, which is determined, composed and calculated by BISL, or any successor thereto, without regard to the Issuer orthe New York Long-Term Tax-Exempt Fund or the owners of the New York Long-Term Tax-Exempt Fund.

Additionally, Vanguard may for itself execute transaction(s) with Barclays in or relating to the Index in connection with the New YorkLong-Term Tax-Exempt Fund. Investors acquire the New York Long-Term Tax-Exempt Fund from Vanguard and investors neither acquireany interest in the Index nor enter into any relationship of any kind whatsoever with Bloomberg or Barclays upon making aninvestment in the New York Long-Term Tax-Exempt Fund. The New York Long-Term Tax-Exempt Fund is not sponsored, endorsed, soldor promoted by Bloomberg or Barclays. Neither Bloomberg nor Barclays makes any representation or warranty, express or impliedregarding the advisability of investing in the New York Long-Term Tax-Exempt Fund or the advisability of investing in securitiesgenerally or the ability of the Index to track corresponding or relative market performance. Neither Bloomberg nor Barclays has passedon the legality or suitability of the New York Long-Term Tax-Exempt Fund with respect to any person or entity. Neither Bloomberg norBarclays is responsible for and has not participated in the determination of the timing of, prices at, or quantities of the New YorkLong-Term Tax-Exempt Fund to be issued. Neither Bloomberg nor Barclays has any obligation to take the needs of the Issuer or theowners of the New York Long-Term Tax-Exempt Fund or any other third party into consideration in determining, composing orcalculating the Index. Neither Bloomberg nor Barclays has any obligation or liability in connection with administration, marketing ortrading of the New York Long-Term Tax-Exempt Fund.

The licensing agreement between Bloomberg and Barclays is solely for the benefit of Bloomberg and Barclays and not for the benefitof the owners of the New York Long-Term Tax-Exempt Fund, investors or other third parties. In addition, the licensing agreementbetween Vanguard and Bloomberg is solely for the benefit of Vanguard and Bloomberg and not for the benefit of the owners of theNew York Long-Term Tax-Exempt Fund, investors or other third parties.

NEITHER BLOOMBERG NOR BARCLAYS SHALL HAVE ANY LIABILITY TO THE ISSUER, INVESTORS OR TO OTHER THIRD PARTIES FORTHE QUALITY, ACCURACY AND/OR COMPLETENESS OF THE BLOOMBERG BARCLAYS INDEX OR ANY DATA INCLUDED THEREIN ORFOR INTERRUPTIONS IN THE DELIVERY OF THE BLOOMBERG BARCLAYS INDEX. NEITHER BLOOMBERG NOR BARCLAYS MAKES ANYWARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ISSUER, THE INVESTORS OR ANY OTHER PERSON ORENTITY FROM THE USE OF THE BLOOMBERG BARCLAYS INDEX OR ANY DATA INCLUDED THEREIN. NEITHER BLOOMBERG NORBARCLAYS MAKES ANY EXPRESS OR IMPLIED WARRANTIES, AND EACH HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OFMERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE BLOOMBERG BARCLAYS INDEX ORANY DATA INCLUDED THEREIN. BLOOMBERG RESERVES THE RIGHT TO CHANGE THE METHODS OF CALCULATION OR PUBLICATION,OR TO CEASE THE CALCULATION OR PUBLICATION OF THE BLOOMBERG BARCLAYS INDEX, AND NEITHER BLOOMBERG NORBARCLAYS SHALL BE LIABLE FOR ANY MISCALCULATION OF OR ANY INCORRECT, DELAYED OR INTERRUPTED PUBLICATION WITHRESPECT TO THE BLOOMBERG BARCLAYS INDEX. NEITHER BLOOMBERG NOR BARCLAYS SHALL BE LIABLE FOR ANY DAMAGES,INCLUDING, WITHOUT LIMITATION, ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, OR ANY LOST PROFITS AND EVEN IFADVISED OF THE POSSIBILITY OF SUCH, RESULTING FROM THE USE OF THE BLOOMBERG BARCLAYS INDEX OR ANY DATAINCLUDED THEREIN OR WITH RESPECT TO THE NEW YORK LONG-TERM TAX-EXEMPT FUND.

None of the information supplied by Bloomberg or Barclays and used in this publication may be reproduced in any manner without theprior written permission of both Bloomberg and Barclays Capital, the investment banking division of Barclays Bank Plc. Barclays BankPlc is registered in England No. 1026167. Registered office 1 Churchill Place London E14 5HP.

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Glossary of Investment Terms

Average Maturity. The average length of time until bonds held by a fund reachmaturity and are repaid. In general, the longer the average maturity, the more afund’s share price fluctuates in response to changes in market interest rates. Incalculating average maturity, a fund uses a bond’s maturity or, if applicable, anearlier date on which the advisor believes it is likely that a maturity-shorteningdevice (such as a call, a put, a refunding, a prepayment, or a redemptionprovision or an adjustable coupon rate) will cause the bond to be repaid.

Bloomberg Barclays NY Municipal Bond Index. An index that includes NewYork-issued investment-grade tax-exempt bonds with maturities of greater thanone year.

Capital Gains Distributions. Payments to mutual fund shareholders of gainsrealized on securities that a fund has sold at a profit, minus any realized losses.

Cash Equivalent Investments. Cash deposits, short-term bank deposits, andmoney market instruments that include U.S. Treasury bills and notes, bankcertificates of deposit (CDs), repurchase agreements, commercial paper, andbanker’s acceptances.

Coupon Rate. The interest rate paid by the issuer of a debt security until itsmaturity. It is expressed as an annual percentage of the face value ofthe security.

Dividend Distributions. Payments to mutual fund shareholders of income frominterest or dividends generated by a fund’s investments.

Expense Ratio. A fund’s total annual operating expenses expressed as apercentage of the fund’s average net assets. The expense ratio includesmanagement and administrative expenses, but it does not include thetransaction costs of buying and selling portfolio securities.

Face Value. The amount to be paid at a bond’s maturity; also known as the parvalue or principal.

Fixed Income Security. An investment, such as a bond, representing a debt thatmust be repaid by a specified date, and on which the borrower must pay a fixed,variable, or floating rate of interest.

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Inception Date. The date on which the assets of a fund (or one of its shareclasses) are first invested in accordance with the fund’s investment objective.For funds with a subscription period, the inception date is the day after thatperiod ends. Investment performance is generally measured from theinception date.

Investment-Grade Bond. A debt security whose credit quality is considered byindependent bond rating agencies, or through independent analysis conductedby a fund’s advisor, to be sufficient to ensure timely payment of principal andinterest under current economic circumstances. Debt securities rated in one ofthe four highest rating categories are considered investment-grade. Other debtsecurities may be considered by an advisor to be investment-grade.

Joint Committed Credit Facility. Each Fund participates, along with other fundsmanaged by Vanguard, in a committed credit facility provided by a syndicate oflenders pursuant to a credit agreement that may be renewed annually; eachVanguard fund is individually liable for its borrowings, if any, under the creditfacility. The amount and terms of the committed credit facility are subject toapproval by the Funds’ board of trustees and renegotiation with the lendersyndicate on an annual basis.

Municipal Bond. A bond issued by a state or local government or by othergovernmental authorities. Interest income from municipal bonds, and thereforedividend income from municipal bond funds, is generally free from federalincome taxes and generally exempt from taxes in the state in which the bondswere issued.

Mutual Fund. An investment company that pools the money of many peopleand invests it in a variety of securities in an effort to achieve a specific objectiveover time.

New York Stock Exchange (NYSE). A stock exchange based in New York Citythat is open for regular trading on business days, Monday through Friday, from9:30 a.m. to 4 p.m., Eastern time.

Principal. The face value of a debt instrument or the amount of money put intoan investment.

Securities. Stocks, bonds, money market instruments, and other investments.

Stable Net Asset Value (NAV). A share price that maintains a consistent value(e.g., $1.00 or $100.00) using special pricing and valuation conventions.

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Total Return. A percentage change, over a specified time period, in a mutualfund’s net asset value, assuming the reinvestment of all distributions ofdividends and capital gains.

Volatility. The fluctuations in value of a mutual fund or other security. The greatera fund’s volatility, the wider the fluctuations in its returns.

Yield. Income (interest or dividends) earned by an investment, expressed as apercentage of the investment’s price.

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Page 65: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

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Page 66: Vanguard NewYorkTax-Exempt Funds Prospectus · During the periods shown in the bar chart, the highest and lowest returns for a calendar quarter were: Total Return Quarter/Year Highest

Connect with Vanguard®

> vanguard.com

For More InformationIf you would like more information about Vanguard NewYork Tax-Exempt Funds, the following documents areavailable free upon request:

Annual/Semiannual Reports to ShareholdersAdditional information about the Funds’ investments isavailable in the Funds’ annual and semiannual reportsto shareholders. In the annual report, you will find adiscussion of the market conditions and investmentstrategies that significantly affected the Funds’performance during their last fiscal year.

Statement of Additional Information (SAI)The SAI provides more detailed information about theFunds and is incorporated by reference into (and thuslegally a part of) this prospectus.

To receive a free copy of the latest annual orsemiannual report or the SAI, or to request additionalinformation about the Funds or other Vanguard funds,please visit vanguard.com or contact us as follows:

If you are an individual investor:Telephone: 800-662-7447;Text telephone for people with hearing impairment:800-749-7273

If you are a current Vanguard shareholder and wouldlike information about your account, accounttransactions, and/or account statements, please call:

Client Services DepartmentTelephone: 800-662-2739;Text telephone for people with hearing impairment:800-749-7273

Information Provided by the Securities andExchange Commission (SEC)Reports and other information about the Funds areavailable in the EDGAR database on the SEC’s websiteat www.sec.gov, or you can receive copies of thisinformation, for a fee, by electronic request at thefollowing email address: [email protected].

Funds’ Investment Company Act file number: 811-04570

© 2020 The Vanguard Group, Inc. All rights reserved.Vanguard Marketing Corporation, Distributor.

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